## 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. Two requirements of OVB**

**2. GEV**

**3. Discrete random variable**

**4. Mean reversion in variance**

**5. WLS**

**6. Normal distribution**

**7. Sample correlation**

**8. Binomial distribution**

**9. Deterministic Simulation**

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

**11. Time series data**

**12. Pooled data**

**13. Difference between population and sample variance**

**14. F distribution**

**15. Beta distribution**

**16. SER**

**17. Empirical frequency**

**18. Simulating for VaR**

**19. Single variable (univariate) probability**

**20. Variance of sample mean**

**21. Implied standard deviation for options**

**22. Variance - covariance approach for VaR of a portfolio**

**23. Block maxima**

**24. Monte Carlo Simulations**

**25. Exact significance level**

**26. Variance of X+Y assuming dependence**

**27. Adjusted R^2**

**28. K - th moment**

**29. Four sampling distributions**

**30. Historical std dev**

**31. Mean(expected value)**

**32. Cross - sectional**

**33. Result of combination of two normal with same means**

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

**35. Joint probability functions**

**36. Homoskedastic only F - stat**

**37. Multivariate Density Estimation (MDE)**

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

**39. i.i.d.**

**40. Heteroskedastic**

**41. Sample covariance**

**42. Law of Large Numbers**

**43. Mean reversion in asset dynamics**

**44. Kurtosis**

**45. GARCH**

**46. Reliability**

**47. SER**

**48. Bootstrap method**

**49. ESS**

**50. Skewness**