PRMIA 8007 exam - in .pdf

8007 pdf
  • 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 Price: $59.99
  • PDF Demo

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  • 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 Version + PC Test Engine + Online Test Engine
  • Value Pack Total: $119.98  $79.99
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PRMIA 8007 exam - Testing Engine

8007 Testing Engine
  • Exam Code: 8007
  • Exam Name: Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition
  • Updated: Sep 16, 2026
  • Q & A: 133 Questions and Answers
  • Software Price: $59.99
  • Testing Engine

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PRMIA 8007 Exam Syllabus Topics:

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

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

                              Question #1

                              What is the sum of the first 20 terms of this sequence: 3, 5, 9, 17, 33, 65,...?

                              • A. 2 097 172
                              • B. 1 048 574
                              • C. 2 097 170
                              • D. 1 048 595
                              Reveal Solution  Discussion  0

                              Correct Answer: C  🗳️

                              Question #2

                              The sum of the infinite series 1+1/2+1/3+1/4+1/5+.... equals:

                              • A. Infinity
                              • B. 20
                              • C. 12
                              • D. 128
                              Reveal Solution  Discussion  0

                              Correct Answer: A  🗳️

                              Question #3

                              A 2-year bond has a yield of 5% and an annual coupon of 5%. What is the Macaulay Duration of the bond?

                              • A. 2
                              • B. 1.95
                              • C. 1.86
                              • D. 1.75
                              Reveal Solution  Discussion  0

                              Correct Answer: B  🗳️

                              Question #4

                              You are given the following regressions of the first difference of the log of a commodity price on the lagged price and of the first difference of the log return on the lagged log return. Each regression is based on 100 data points and figures in square brackets denote the estimated standard errors of the coefficient estimates:
                              Which of the following hypotheses can be accepted based on these regressions at the 5% confidence level (corresponding to a critical value of the Dickey Fuller test statistic of - 2.89)?

                              • A. The commodity returns are stationary
                              • B. None of the above
                              • C. The commodity returns are integrated of order 1
                              • D. The commodity prices are stationary
                              Reveal Solution  Discussion  0

                              Correct Answer: B  🗳️

                              Question #5

                              At what point x does the function f(x) = x3 - 4x2 + 1 have a local minimum?

                              • A. 2.66667
                              • B. 2
                              • C. -0.666666667
                              • D. 0
                              Reveal Solution  Discussion  0

                              Correct Answer: A  🗳️

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