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Most Recent PRMIA 8007 Exam Questions & Answers


Prepare for the PRMIA Mathematical Foundations of Risk Measurement – 2015 Edition exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the PRMIA 8007 exam and achieve success.

The questions for 8007 were last updated on Dec 22, 2024.
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Question No. 1

What is the probability of tossing a coin and getting exactly 2 heads out of 5 throws?

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Correct Answer: C

Question No. 2

A 2-step binomial tree is used to value an American put option with strike 104, given that the underlying price is currently 100. At each step the underlying price can move up by 20% or down by 20% and the risk-neutral probability of an up move is 0.55. There are no dividends paid on the underlying and the discretely compounded risk free interest rate over each time step is 2%. What is the value of the option in this model?

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Correct Answer: C

Question No. 3

You intend to invest $100 000 for five years. Four different interest payment options are available. Choose the interest option that yields the highest return over the five year period.

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Correct Answer: C

Question No. 4

Which of the following statements is true for symmetric positive definite matrices?

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Correct Answer: A

Question No. 5

Consider the following distribution data for a random variable X: What is the mean and variance of X?

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Correct Answer: D

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