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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. Mean reversion in variance






2. Tractable






3. Cross - sectional






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






5. Standard variable for non - normal distributions






6. Monte Carlo Simulations






7. Variance of X - Y assuming dependence






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






9. Variance(discrete)






10. Variance of X+b






11. Test for statistical independence






12. Two ways to calculate historical volatility






13. Multivariate Density Estimation (MDE)






14. Poisson distribution equations for mean variance and std deviation






15. Simulation models






16. Continuous representation of the GBM






17. Importance sampling technique






18. Difference between population and sample variance






19. Confidence ellipse






20. Hybrid method for conditional volatility






21. Variance of weighted scheme






22. Mean reversion in asset dynamics






23. LFHS






24. Central Limit Theorem






25. What does the OLS minimize?






26. SER






27. Logistic distribution






28. Binomial distribution equations for mean variance and std dev






29. Binomial distribution






30. Extreme Value Theory






31. Heteroskedastic






32. Unconditional vs conditional distributions






33. Regime - switching volatility model






34. Deterministic Simulation






35. Control variates technique






36. P - value






37. LAD






38. Type I error






39. GPD






40. Single variable (univariate) probability






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






42. POT






43. Simulating for VaR






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






45. Least squares estimator(m)






46. Multivariate probability






47. Continuous random variable






48. Test for unbiasedness






49. Weibul distribution






50. Sample mean