## Test your basic knowledge |

# 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**