## Test your basic knowledge |

# 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. Cross - sectional**

**2. Weibul distribution**

**3. Central Limit Theorem**

**4. GPD**

**5. Non - parametric vs parametric calculation of VaR**

**6. Logistic distribution**

**7. Mean reversion in variance**

**8. Control variates technique**

**9. Test for unbiasedness**

**10. Cholesky factorization (decomposition)**

**11. Simplified standard (un - weighted) variance**

**12. Hazard rate of exponentially distributed random variable**

**13. Homoskedastic only F - stat**

**14. F distribution**

**15. Time series data**

**16. Beta distribution**

**17. Variance(discrete)**

**18. Binomial distribution equations for mean variance and std dev**

**19. Economical(elegant)**

**20. Unbiased**

**21. SER**

**22. Kurtosis**

**23. LAD**

**24. Mean reversion in asset dynamics**

**25. Antithetic variable technique**

**26. Confidence interval for sample mean**

**27. Direction of OVB**

**28. Type I error**

**29. Panel data (longitudinal or micropanel)**

**30. i.i.d.**

**31. Two ways to calculate historical volatility**

**32. Regime - switching volatility model**

**33. Heteroskedastic**

**34. R^2**

**35. Type II Error**

**36. Historical std dev**

**37. Continuously compounded return equation**

**38. Lognormal**

**39. Standard normal distribution**

**40. Unconditional vs conditional distributions**

**41. What does the OLS minimize?**

**42. Mean reversion**

**43. Poisson distribution equations for mean variance and std deviation**

**44. Importance sampling technique**

**45. Reliability**

**46. Persistence**

**47. Critical z values**

**48. Mean(expected value)**

**49. Gamma distribution**

**50. Binomial distribution**