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PRMIA 8007 Actual Tests : Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition

8007 actual test
  • Exam Code: 8007
  • Exam Name: Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition
  • Updated: Sep 16, 2026
  • Q & A: 133 Questions and Answers
  • PDF Demo
  • PC Test Engine
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  • Total Price: $59.99  

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PRMIA 8007 Exam Syllabus Topics:

SectionObjectives
Topic 1: Risk Measurement Techniques- Value at Risk (VaR)
  • 1. Historical simulation approach
    • 2. Parametric and non-parametric VaR
      - Volatility and correlation
      • 1. Correlation estimation techniques
        • 2. Variance-covariance methods
          Topic 2: Probability and Statistics Foundations- Statistical inference
          • 1. Confidence intervals and hypothesis testing
            • 2. Estimation theory
              - Random variables and probability distributions
              • 1. Expectation, variance, and moments
                • 2. Discrete and continuous distributions
                  Topic 3: Simulation and Numerical Methods- Monte Carlo simulation
                  • 1. Risk distribution simulation
                    • 2. Random number generation
                      Topic 4: Stochastic Processes and Time Series- Stochastic processes basics
                      • 1. Brownian motion (introductory level)
                        • 2. Markov processes
                          - Time series analysis
                          • 1. AR, MA, and ARMA models
                            • 2. Autocorrelation and stationarity

                              PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition Sample Questions:

                              Question #1

                              Which of the following properties is exhibited by multiplication, but not by addition?

                              • A. associativity
                              • B. distributivity
                              • C. invertibility
                              • D. commutativity
                              Reveal Solution  Discussion  0

                              Correct Answer: B  🗳️

                              Question #2

                              There are two portfolios with no overlapping of stocks or bonds. Portfolio 1 has 6 stocks and 6 bonds.
                              Portfolio 2 has 4 stocks and 8 bonds. If we randomly select one stock, what is the probability that it came from Portfolio1?

                              • A. None of these
                              • B. 0.6
                              • C. 0.5
                              • D. 0.3
                              Reveal Solution  Discussion  0

                              Correct Answer: B  🗳️

                              Question #3

                              If the annual volatility of returns is 25% what is the variance of the quarterly returns?

                              • A. 0.1250
                              • B. 0.0156
                              • C. 0.0625
                              • D. None of the above
                              Reveal Solution  Discussion  0

                              Correct Answer: B  🗳️

                              Question #4

                              The bisection method can be used for solving f(x)=0 for a unique solution of x, when

                              • A. The function f(x) is differentiable and we have an explicit expression for the derivative
                              • B. The function f(x) is continuous and monotonic
                              • C. The function f(x) is continuous
                              • D. The function f(x) is differentiable
                              Reveal Solution  Discussion  0

                              Correct Answer: B  🗳️

                              Question #5

                              A biased coin has a probability of getting heads equal to 0.3. If the coin is tossed 4 times, what is the probability of getting heads at least two times?

                              • A. 0.7367
                              • B. None of these
                              • C. 0.2646
                              • D. 0.3483
                              Reveal Solution  Discussion  0

                              Correct Answer: D  🗳️

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