Quantitative Analysis — FRM Part 1 Practice Questions

115 free FRM Part 1 questions on Quantitative Analysis: 49 easy, 52 medium, and 14 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn Quantitative Analysis from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

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1. What is the probability that the business line experiences exactly two events in a given year?
2. A single discrete trial that results in exactly one of two possible outcomes (success or failure) is known as
3. A probability distribution that is asymmetric and has a significantly long tail extending to the left is said
4. How does the mean of a lognormal distribution compare to the mean of its associated normal distribution (X = e
5. How many parameters are required to fully define its shape and location?
6. Which of the following methods would most effectively mitigate this issue?
7. In combinatorics, which coefficient represents the number of ways to select r items from a set of n distinct i
8. A 3 × 3 correlation matrix has eigenvalues λ_1 = 1.5, λ_2 =… — What does this indicate about the assets in the
9. A risk analyst is reviewing a correlation matrix for a three… — What is the primary implication of these resul
10. What happens to the standard error of the mean if the sample size is quadrupled?
11. Which critical value from the z-table is most appropriate?
12. If an analyst says a return series has 'fat tails,' what does this imply for a risk model based on the normal
13. The normal distribution is characterized by its symmetry. What is the theoretical skewness of any perfectly no
14. A stock's return follows a lognormal distribution. If the natural log of the price is normally distributed wit
15. What is the variance of a standard normal random variable?
16. If the correlation between two assets is -1.0, what does this indicate about their co-movement?
17. An EWMA variance update is performed. If the current squared return r^2_t-1 is exactly equal to the previous v
18. If yesterday's volatility was 2% and today's return was 3%, what is the updated volatility estimate?
19. A GARCH(1,1) model has α = 0.10 and β = 0.85. If the analyst wishes to double the speed of mean reversion whil
20. A risk analyst is required to store the minimum amount of da… — Why is the EWMA model particularly efficient f
21. What does the Coefficient of Determination R^2 measure in a regression analysis?
22. An analyst notes that for a specific asset, the GARCH(1,1) parameters sum to α + β = 0.9995. If ω is very smal
23. What is the model's recall?
24. An analyst performs a simple linear regression of asset returns Y on market returns X. If the sample covarianc
25. What is the probability that exactly 2 events will occur in a given year?
26. What is the probability that a standard normal random variable Z takes a value less than its mean?
27. When constructing a 99% confidence interval for a population mean using a large sample size, which two-tailed
28. What is the daily long-run (unconditional) volatility predicted by this model?
29. In the context of credit risk, if D is the event of default and F is a model flag, how is the 'unconditional d
30. An analyst suspects 'Heteroskedasticity' in a cross-sectiona… — Which of the following is a direct consequence