# 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. Sample correlation

2. Stochastic error term

3. Single variable (univariate) probability

4. Pooled data

5. Extreme Value Theory

6. Conditional probability functions

7. Continuously compounded return equation

8. Two requirements of OVB

9. Mean reversion

10. Continuous representation of the GBM

11. Standard variable for non - normal distributions

12. SER

13. GPD

14. Key properties of linear regression

15. Bootstrap method

16. Economical(elegant)

17. Normal distribution

18. Overall F - statistic

19. Significance =1

20. Central Limit Theorem

21. Logistic distribution

22. Confidence interval for sample mean

23. Mean(expected value)

24. SER

25. Simulation models

26. Variance of aX + bY

27. Least squares estimator(m)

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

29. Multivariate probability

30. F distribution

31. Variance of aX

32. Joint probability functions

33. Historical std dev

34. Empirical frequency

35. Poisson distribution equations for mean variance and std deviation

36. Difference between population and sample variance

37. LFHS

38. Unbiased

39. Sample mean

40. Implications of homoscedasticity

41. Mean reversion in variance

42. Binomial distribution

43. Unstable return distribution

44. Central Limit Theorem(CLT)

45. Deterministic Simulation

46. Time series data

47. Econometrics

48. Discrete random variable

49. Bernouli Distribution

50. Variance - covariance approach for VaR of a portfolio