## 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. SER**

**2. Variance of sample mean**

**3. Multivariate probability**

**4. Unconditional vs conditional distributions**

**5. Variance of X+Y assuming dependence**

**6. Persistence**

**7. Sample mean**

**8. ESS**

**9. Discrete random variable**

**10. Two ways to calculate historical volatility**

**11. Shortcomings of implied volatility**

**12. Variance of X+b**

**13. Simulation models**

**14. Economical(elegant)**

**15. Time series data**

**16. Beta distribution**

**17. Exact significance level**

**18. Variance of aX**

**19. Variance of X+Y**

**20. Inverse transform method**

**21. Reliability**

**22. Standard error for Monte Carlo replications**

**23. Variance of aX + bY**

**24. Hazard rate of exponentially distributed random variable**

**25. Panel data (longitudinal or micropanel)**

**26. Priori (classical) probability**

**27. Confidence interval (from t)**

**28. Heteroskedastic**

**29. Statistical (or empirical) model**

**30. Stochastic error term**

**31. Perfect multicollinearity**

**32. Unbiased**

**33. GARCH**

**34. Implied standard deviation for options**

**35. Two requirements of OVB**

**36. T distribution**

**37. Binomial distribution equations for mean variance and std dev**

**38. Deterministic Simulation**

**39. Pooled data**

**40. BLUE**

**41. Efficiency**

**42. Key properties of linear regression**

**43. Sample correlation**

**44. Test for unbiasedness**

**45. Sample covariance**

**46. Unstable return distribution**

**47. Homoskedastic**

**48. Adjusted R^2**

**49. Standard variable for non - normal distributions**

**50. Covariance calculations using weight sums (lambda)**