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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. Discrete representation of the GBM






2. Implied standard deviation for options






3. Conditional probability functions






4. Control variates technique






5. Overall F - statistic






6. Simulating for VaR






7. LAD






8. Antithetic variable technique






9. Sample variance






10. What does the OLS minimize?






11. Adjusted R^2






12. Exact significance level






13. Confidence interval for sample mean






14. Heteroskedastic






15. Multivariate probability






16. Logistic distribution






17. Type II Error






18. T distribution






19. Key properties of linear regression






20. Cross - sectional






21. Two ways to calculate historical volatility






22. Shortcomings of implied volatility






23. Historical std dev






24. Two assumptions of square root rule






25. Unconditional vs conditional distributions






26. Covariance calculations using weight sums (lambda)






27. Economical(elegant)






28. Potential reasons for fat tails in return distributions






29. WLS






30. Binomial distribution equations for mean variance and std dev






31. Multivariate Density Estimation (MDE)






32. Difference between population and sample variance






33. Standard error for Monte Carlo replications






34. Hazard rate of exponentially distributed random variable






35. Square root rule






36. Regime - switching volatility model






37. LFHS






38. Mean(expected value)






39. Direction of OVB






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


41. Standard normal distribution






42. Variance(discrete)






43. Two requirements of OVB






44. Panel data (longitudinal or micropanel)






45. Test for unbiasedness






46. Bernouli Distribution






47. POT






48. SER






49. Discrete random variable






50. Non - parametric vs parametric calculation of VaR