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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. ESS






2. Monte Carlo Simulations






3. Variance of sample mean






4. GPD






5. Persistence






6. Lognormal






7. Kurtosis






8. i.i.d.






9. Binomial distribution






10. Discrete representation of the GBM






11. P - value






12. Expected future variance rate (t periods forward)






13. Tractable






14. Test for statistical independence






15. Beta distribution






16. Difference between population and sample variance






17. Cholesky factorization (decomposition)






18. BLUE






19. Key properties of linear regression






20. GEV






21. Exact significance level






22. Continuous random variable






23. Variance(discrete)






24. Hybrid method for conditional volatility






25. Chi - squared distribution






26. Poisson distribution equations for mean variance and std deviation






27. Historical std dev






28. Normal distribution






29. Shortcomings of implied volatility






30. Perfect multicollinearity






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


32. Continuously compounded return equation






33. Heteroskedastic






34. Bootstrap method






35. Pooled data






36. Implications of homoscedasticity






37. Standard error for Monte Carlo replications






38. Variance of X - Y assuming dependence






39. Cross - sectional






40. Test for unbiasedness






41. Variance of weighted scheme






42. Confidence interval (from t)






43. Discrete random variable






44. Econometrics






45. Reliability






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


47. Mean reversion






48. Panel data (longitudinal or micropanel)






49. WLS






50. Adjusted R^2