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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. Shortcomings of implied volatility






2. Inverse transform method






3. Sample mean






4. Four sampling distributions






5. Homoskedastic






6. WLS






7. Continuously compounded return equation






8. Unbiased






9. Persistence






10. Maximum likelihood method






11. Critical z values






12. Test for unbiasedness






13. Confidence interval (from t)






14. Priori (classical) probability






15. Type I error






16. POT






17. Continuous representation of the GBM






18. Two ways to calculate historical volatility






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






20. Adjusted R^2






21. Direction of OVB






22. Kurtosis






23. Perfect multicollinearity






24. Single variable (univariate) probability






25. Bernouli Distribution






26. Variance - covariance approach for VaR of a portfolio






27. Variance of X+Y






28. Variance of X+Y assuming dependence






29. Least squares estimator(m)






30. EWMA






31. Type II Error






32. Multivariate probability






33. Poisson Distribution






34. R^2






35. Skewness






36. Consistent






37. Importance sampling technique






38. Unconditional vs conditional distributions






39. Discrete representation of the GBM






40. Normal distribution






41. Key properties of linear regression






42. Joint probability functions






43. Unstable return distribution






44. P - value






45. Non - parametric vs parametric calculation of VaR






46. Sample correlation






47. Control variates technique






48. Difference between population and sample variance






49. Central Limit Theorem(CLT)






50. Variance of sampling distribution of means when n<N