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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. Implications of homoscedasticity

2. Block maxima

3. Standard error for Monte Carlo replications

4. POT

5. Control variates technique

6. Variance of X+Y


8. SER

9. T distribution

10. Two requirements of OVB

11. Empirical frequency

12. Covariance

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

14. LFHS

15. Standard normal distribution

16. Historical std dev

17. Square root rule

18. Unbiased

19. Economical(elegant)

20. Continuously compounded return equation

21. Single variable (univariate) probability

22. Standard error

23. Binomial distribution equations for mean variance and std dev

24. Hazard rate of exponentially distributed random variable

25. Confidence interval for sample mean

26. Unconditional vs conditional distributions

27. Variance of X+b

28. Inverse transform method

29. Variance of sample mean

30. Homoskedastic

31. i.i.d.

32. Monte Carlo Simulations

33. Cholesky factorization (decomposition)

34. What does the OLS minimize?

35. Poisson distribution equations for mean variance and std deviation

36. Reliability

37. Type I error

38. Antithetic variable technique

39. Non - parametric vs parametric calculation of VaR

40. Poisson Distribution

41. Efficiency

42. Extreme Value Theory

43. Marginal unconditional probability function

44. Cross - sectional

45. Heteroskedastic

46. Sample mean

47. R^2

48. WLS

49. Variance of X+Y assuming dependence

50. Maximum likelihood method