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PRMIA 8007 Exam With Confidence Using Practice Dumps

Exam Code:
8007
Exam Name:
Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition
Certification:
Vendor:
Questions:
132
Last Updated:
Dec 4, 2024
Exam Status:
Stable
PRMIA 8007

8007: PRM Certification Exam 2024 Study Guide Pdf and Test Engine

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Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition Questions and Answers

Question 1

A linear regression gives the following output:

Figures in square brackets are estimated standard errors of the coefficient estimates.

What is the value of the test statistic for the hypothesis that the coefficient of is less than 1?

Options:

A.

0.32

B.

0.64

C.

0.96

D.

1.92

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Question 2

Consider a binomial lattice where a security price S moves up by a factor u with probability p, or down by a factor d with probability 1 - p. If we set d > 1/u then which of the following will be TRUE?

Options:

A.

The lattice will not recombine

B.

The probability of an up move will not be constant

C.

There will always be a downward drift in the lattice

D.

None of the above

Question 3

Let X be a random variable normally distributed with zero mean and let . Then the correlation between X and Y is:

Options:

A.

negative

B.

zero

C.

not defined

D.

positive