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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. 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