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. Adjusted R^2






2. Importance sampling technique






3. T distribution






4. Antithetic variable technique






5. Standard variable for non - normal distributions






6. Kurtosis






7. SER






8. Implied standard deviation for options






9. Maximum likelihood method






10. Mean reversion in asset dynamics






11. Two assumptions of square root rule






12. Variance of X - Y assuming dependence






13. Unstable return distribution






14. Exponential distribution






15. Critical z values






16. Variance of weighted scheme






17. Variance(discrete)






18. Central Limit Theorem






19. Economical(elegant)






20. F distribution






21. Simulating for VaR






22. GARCH






23. Binomial distribution equations for mean variance and std dev






24. Cross - sectional






25. Continuous random variable






26. Poisson Distribution






27. Central Limit Theorem(CLT)






28. Lognormal






29. P - value






30. Continuous representation of the GBM






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






32. Discrete representation of the GBM






33. R^2






34. Chi - squared distribution






35. Variance - covariance approach for VaR of a portfolio






36. Panel data (longitudinal or micropanel)






37. Shortcomings of implied volatility






38. Confidence interval for sample mean






39. Expected future variance rate (t periods forward)






40. Variance of aX + bY






41. Sample correlation






42. Perfect multicollinearity






43. Confidence interval (from t)






44. Hazard rate of exponentially distributed random variable






45. Bootstrap method






46. GPD






47. Covariance






48. EWMA






49. Confidence ellipse






50. Sample variance