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FRM Foundations Of Risk Management Quantitative Methods

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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. Extreme Value Theory

2. Variance of aX

3. Central Limit Theorem

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

5. Variance of X+Y assuming dependence

6. Potential reasons for fat tails in return distributions

7. Heteroskedastic

8. What does the OLS minimize?

9. T distribution

10. GEV

11. Sample correlation

12. Variance of aX + bY

13. Time series data

14. Variance of sampling distribution of means when n<N

15. Importance sampling technique

16. Poisson distribution equations for mean variance and std deviation

17. Econometrics

18. Shortcomings of implied volatility

19. Two ways to calculate historical volatility

20. Confidence interval for sample mean

21. Marginal unconditional probability function

22. Monte Carlo Simulations

23. Perfect multicollinearity

24. Antithetic variable technique

25. Economical(elegant)

26. Regime - switching volatility model

27. Confidence ellipse

28. Standard variable for non - normal distributions

29. Two requirements of OVB

30. WLS

31. Variance - covariance approach for VaR of a portfolio

32. Covariance

33. Continuous representation of the GBM

34. Hazard rate of exponentially distributed random variable

35. Persistence

36. Consistent

37. Block maxima

38. Overall F - statistic

39. Result of combination of two normal with same means

40. K - th moment

41. Unbiased

42. Variance of X - Y assuming dependence

43. F distribution

44. Multivariate probability

45. Mean reversion

46. Cholesky factorization (decomposition)

47. Control variates technique

48. Tractable

49. Difference between population and sample variance

50. R^2