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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. 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