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. Simplified standard (un - weighted) variance






2. Central Limit Theorem(CLT)






3. Confidence interval for sample mean






4. Homoskedastic






5. Cross - sectional






6. Confidence ellipse






7. Result of combination of two normal with same means






8. Shortcomings of implied volatility






9. Test for unbiasedness






10. Hybrid method for conditional volatility






11. Mean reversion in asset dynamics






12. BLUE






13. Variance of X+Y assuming dependence






14. Time series data






15. Stochastic error term






16. Two drawbacks of moving average series






17. GARCH






18. Priori (classical) probability






19. Sample covariance






20. Antithetic variable technique






21. Mean(expected value)






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






23. Maximum likelihood method






24. Type I error






25. Binomial distribution equations for mean variance and std dev






26. Variance of sample mean






27. LAD






28. Perfect multicollinearity






29. Econometrics






30. Gamma distribution






31. Key properties of linear regression






32. Variance of weighted scheme






33. Weibul distribution






34. Efficiency






35. Multivariate Density Estimation (MDE)






36. Law of Large Numbers






37. Monte Carlo Simulations






38. POT






39. Statistical (or empirical) model






40. Implications of homoscedasticity






41. Empirical frequency






42. Normal distribution






43. Variance - covariance approach for VaR of a portfolio






44. Continuous random variable






45. Sample variance






46. ESS






47. Continuously compounded return equation






48. Sample correlation






49. T distribution






50. Deterministic Simulation