Mathematical Foundations of Risk Measurement-2015 Edition 8007 exam tests your knowledge and understanding of the mathematical foundations of risk measurement. In PRMIA 8007 exam, we take you through the mathematical foundations of risk assessment. While there are many nuances to the practice of risk management that go beyond the quantitative, it is essential today for every risk manager to be able to assess risks. We just released the latest PRMIA PRM Certification 8007 training questions, which are your best choice to prepare for the test.
PRIMA 8007 Exam
All PRIMA 8007 exam questions are multiple-choice, and there are no penalties for incorrect answers. Bear in mind that it is vitally important to finish the exam in the time allotted. Do not linger over questions longer than is sensible. You can register Mathematical Foundations of Risk Measurement-2015 Edition 8007 exam at Pearson VUE testing center. At the exam center you will have access to an online Texas Instrument TI308XS calculator. No other materials may be brought into the exam room with you.
8007 Mathematical Foundations of Risk Measurement-2015 Edition Topics
Exam II 8007 Mathematical Foundations of Risk Measurement-2015 Edition exam topics cover the following details.
Foundations
Descriptive Statistics-Introduction
Measures of Location or Central
Measures of Dispersion
Bivariate Data
Case Study: Interpretation of Statistical Output
Matrix Algebra
Probability Theory in Finance
Regression Analysis in Finance
Numerical Methods
Study PRIMA Certification Exam II 8007 Training Questions
PRIMA Certification Exam II 8007 training questions are the best material for you to study the above topics. Share some Mathematical Foundations of Risk Measurement-2015 Edition 8007 exam training questions and answers below.
1. Which of the following is a false statement concerning the probability density function and the cumulative distribution function of a random variable?
A. the definite integral of the PDF from minus infinity to plus infinity is zero.
B. the CDF approaches 1 as its argument approaches infinity.
C. the PDF is non-negative.
D. the definite integral of the CDF from minus infinity to plus infinity is undefined.
Answer: A
2. In a 2-step binomial tree, at each step the underlying price can move up by a factor of u = 1.1 or down by a factor of d = 1/u. The continuously compounded risk free interest rate over each time step is 1% and there are no dividends paid on the underlying. Use the Cox, Ross, Rubinstein parameterization to find the risk neutral probability and hence find the value of a European put option with strike 102, given that the underlying price is currently 100.
A. 5.19
B. 4.18
C. 6.31
D. 5.66
Answer: C
3.Stress testing portfolios requires changing the asset volatilities and correlations to extreme values. Which of the following would lead to a non positive definite covariance matrix?
A. Changing the volatilities to be greater than 100%
B. Changing all the correlations to be unity
C. Changing all the correlations to be zero
D. All of the above
Answer: B
4.The correlation between two asset returns is 1. What is the smallest eigenvalue of their correlation matrix?
A. 0
B. 1
C. None of the above
D. 0.5
Answer: A
5.What is the simplest form of this expression: log2(165/2)
A. 5/2 + log2(16)
B. 10
C. 32
D. log2 (5/2) + log2(16)
Answer: B
