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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. Standard error






2. Variance of X+b






3. Heteroskedastic






4. Unstable return distribution






5. Variance of weighted scheme






6. Regime - switching volatility model






7. Pooled data






8. Historical std dev






9. Multivariate Density Estimation (MDE)






10. Beta distribution






11. Key properties of linear regression






12. Central Limit Theorem






13. Skewness






14. Binomial distribution






15. Implications of homoscedasticity






16. LAD






17. F distribution






18. Weibul distribution






19. R^2






20. Control variates technique






21. Homoskedastic only F - stat






22. Mean reversion in variance






23. What does the OLS minimize?






24. SER






25. Consistent






26. Hybrid method for conditional volatility






27. Two ways to calculate historical volatility






28. Maximum likelihood method






29. Priori (classical) probability






30. Variance of aX






31. Tractable






32. Overall F - statistic






33. Joint probability functions






34. Antithetic variable technique






35. Bootstrap method






36. Standard variable for non - normal distributions






37. Covariance calculations using weight sums (lambda)






38. Two assumptions of square root rule






39. P - value






40. Reliability






41. Covariance






42. Non - parametric vs parametric calculation of VaR






43. Persistence






44. Block maxima






45. Variance of aX + bY






46. Inverse transform method






47. Potential reasons for fat tails in return distributions






48. ESS






49. Poisson Distribution






50. Confidence interval for sample mean