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FRM Foundations Of Risk Management Quantitative Methods

Instructions:
  • Answer 50 questions in 15 minutes.
  • If you are not ready to take this test, you can study here.
  • Match each statement with the correct term.
  • Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Historical std dev






2. Cholesky factorization (decomposition)






3. R^2






4. Shortcomings of implied volatility






5. Test for unbiasedness






6. Sample covariance






7. Marginal unconditional probability function






8. Chi - squared distribution






9. Law of Large Numbers






10. Maximum likelihood method






11. Bernouli Distribution






12. Deterministic Simulation






13. Two ways to calculate historical volatility






14. Extreme Value Theory






15. Discrete random variable






16. P - value






17. Lognormal






18. Implied standard deviation for options






19. Importance sampling technique






20. Control variates technique






21. Empirical frequency






22. Stochastic error term






23. Persistence






24. Gamma distribution






25. Binomial distribution equations for mean variance and std dev






26. Sample variance






27. Direction of OVB






28. Cross - sectional






29. Mean reversion in variance






30. Expected future variance rate (t periods forward)






31. Hazard rate of exponentially distributed random variable






32. Central Limit Theorem(CLT)






33. Least squares estimator(m)






34. Significance =1






35. Antithetic variable technique






36. POT






37. Non - parametric vs parametric calculation of VaR






38. GPD






39. Normal distribution






40. Variance of aX






41. Mean reversion in asset dynamics






42. Critical z values






43. Regime - switching volatility model






44. Covariance calculations using weight sums (lambda)






45. Limitations of R^2 (what an increase doesn't necessarily imply)






46. Hybrid method for conditional volatility






47. Binomial distribution






48. Homoskedastic only F - stat






49. Variance of weighted scheme






50. GARCH