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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. Mean reversion in variance

2. Tractable

3. Cross - sectional

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

5. Standard variable for non - normal distributions

6. Monte Carlo Simulations

7. Variance of X - Y assuming dependence

8. Extending the HS approach for computing value of a portfolio

9. Variance(discrete)

10. Variance of X+b

11. Test for statistical independence

12. Two ways to calculate historical volatility

13. Multivariate Density Estimation (MDE)

14. Poisson distribution equations for mean variance and std deviation

15. Simulation models

16. Continuous representation of the GBM

17. Importance sampling technique

18. Difference between population and sample variance

19. Confidence ellipse

20. Hybrid method for conditional volatility

21. Variance of weighted scheme

22. Mean reversion in asset dynamics

23. LFHS

24. Central Limit Theorem

25. What does the OLS minimize?

26. SER

27. Logistic distribution

28. Binomial distribution equations for mean variance and std dev

29. Binomial distribution

30. Extreme Value Theory

31. Heteroskedastic

32. Unconditional vs conditional distributions

33. Regime - switching volatility model

34. Deterministic Simulation

35. Control variates technique

36. P - value

37. LAD

38. Type I error

39. GPD

40. Single variable (univariate) probability

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

42. POT

43. Simulating for VaR

44. Limitations of R^2 (what an increase doesn't necessarily imply)

45. Least squares estimator(m)

46. Multivariate probability

47. Continuous random variable

48. Test for unbiasedness

49. Weibul distribution

50. Sample mean