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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. Discrete random variable






2. Mean reversion






3. Covariance






4. Single variable (univariate) probability






5. Time series data






6. Reliability






7. Binomial distribution






8. Simulating for VaR






9. GEV






10. BLUE






11. Statistical (or empirical) model






12. Mean reversion in asset dynamics






13. Poisson Distribution






14. Least squares estimator(m)






15. Biggest (and only real) drawback of GARCH mode






16. Hazard rate of exponentially distributed random variable






17. Normal distribution






18. Central Limit Theorem






19. WLS






20. Gamma distribution






21. Expected future variance rate (t periods forward)






22. Variance(discrete)






23. Consistent






24. Marginal unconditional probability function






25. Simplified standard (un - weighted) variance






26. F distribution






27. Historical std dev






28. Mean(expected value)






29. GARCH






30. Direction of OVB






31. Continuous random variable






32. R^2






33. Control variates technique






34. LAD






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






36. Critical z values






37. Simulation models






38. Overall F - statistic






39. Limitations of R^2 (what an increase doesn't necessarily imply)


40. Persistence






41. Central Limit Theorem(CLT)






42. POT






43. Maximum likelihood method






44. Heteroskedastic






45. Deterministic Simulation






46. SER






47. Lognormal






48. Sample correlation






49. Potential reasons for fat tails in return distributions






50. P - value