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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. Unconditional vs conditional distributions






2. Deterministic Simulation






3. Priori (classical) probability






4. Maximum likelihood method






5. Extreme Value Theory






6. Economical(elegant)






7. Potential reasons for fat tails in return distributions






8. Confidence ellipse






9. Simulation models






10. Law of Large Numbers






11. SER






12. Two requirements of OVB






13. GPD






14. Direction of OVB






15. Antithetic variable technique






16. Square root rule






17. Test for unbiasedness






18. Non - parametric vs parametric calculation of VaR






19. Covariance calculations using weight sums (lambda)






20. What does the OLS minimize?






21. Result of combination of two normal with same means






22. Unstable return distribution






23. Normal distribution






24. Beta distribution






25. Unbiased






26. F distribution






27. LAD






28. Homoskedastic only F - stat






29. Conditional probability functions






30. Test for statistical independence






31. Homoskedastic






32. Implications of homoscedasticity






33. Binomial distribution






34. Two assumptions of square root rule






35. Gamma distribution






36. Sample covariance






37. Stochastic error term






38. Discrete representation of the GBM






39. Empirical frequency






40. Simulating for VaR






41. Standard normal distribution






42. Mean reversion in asset dynamics






43. Multivariate Density Estimation (MDE)






44. K - th moment






45. Reliability






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






47. Adjusted R^2






48. Efficiency






49. Panel data (longitudinal or micropanel)






50. Continuously compounded return equation