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FRM Foundations Of Risk Management Quantitative Methods

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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. Covariance calculations using weight sums (lambda)


3. Homoskedastic only F - stat

4. K - th moment

5. WLS

6. Empirical frequency

7. Type I error

8. Variance - covariance approach for VaR of a portfolio

9. Panel data (longitudinal or micropanel)

10. Monte Carlo Simulations

11. Result of combination of two normal with same means

12. Sample variance

13. Significance =1

14. Reliability

15. Multivariate Density Estimation (MDE)

16. Antithetic variable technique

17. Discrete random variable

18. Extending the HS approach for computing value of a portfolio

19. Kurtosis

20. Historical std dev

21. F distribution

22. Bootstrap method

23. Time series data

24. Exact significance level

25. BLUE

26. Persistence

27. Importance sampling technique

28. Continuous random variable

29. Difference between population and sample variance

30. Least squares estimator(m)

31. Implied standard deviation for options

32. Law of Large Numbers

33. ESS

34. Two ways to calculate historical volatility

35. Normal distribution

36. Two requirements of OVB

37. Tractable

38. Logistic distribution

39. Lognormal

40. Hazard rate of exponentially distributed random variable

41. LAD

42. GPD

43. Implications of homoscedasticity

44. Statistical (or empirical) model

45. EWMA

46. Chi - squared distribution

47. Test for unbiasedness

48. Continuous representation of the GBM

49. Perfect multicollinearity

50. Standard error