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

"Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition", also known as 8007 exam, is a PRMIA Certification. With the complete collection of questions and answers, PrepPDF has assembled to take you through 133 Q&As to your 8007 Exam preparation. In the 8007 exam resources, you will cover every field and category in PRM Certification helping to ready you for your successful PRMIA Certification.

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  • Exam Code: 8007
  • Exam Name: Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition
  • Certification Provider: PRMIA
  • Corresponding Certification: PRM
  • Updated: Sep 08, 2026
  • No. of Questions: 133 Questions & Answers with Testing Engine
  • Download Limit: Unlimited

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PRMIA 8007 Exam Syllabus Topics:

SectionObjectives
Topic 1: Numerical Methods- Quantitative Techniques
  • 1. Simulation Techniques
  • 2. Numerical Approximation
  • 3. Monte Carlo Methods
  • 4. Optimization Methods
Topic 2: Probability Theory- Fundamental Probability Concepts
  • 1. Probability Rules
  • 2. Bayes' Theorem
  • 3. Random Variables
  • 4. Conditional Probability
Topic 3: Risk Measurement Applications- Quantitative Risk Analysis
  • 1. Portfolio Risk Measurement
  • 2. Value at Risk Methodologies
  • 3. Volatility Modeling
  • 4. Sensitivity Analysis
Topic 4: Statistical Analysis- Descriptive and Inferential Statistics
  • 1. Moments and Distributions
  • 2. Maximum Likelihood Estimation
  • 3. Confidence Intervals
  • 4. Hypothesis Testing
Topic 5: Regression and Time Series Analysis- Modeling Techniques
  • 1. Multivariate Regression
  • 2. Linear Regression
  • 3. Time Series Forecasting
  • 4. Model Diagnostics
Topic 6: Calculus- Differential and Integral Calculus
  • 1. Multivariable Calculus
  • 2. Differentiation
  • 3. Integration
  • 4. Functions and Limits
Topic 7: Linear Algebra- Matrix Methods
  • 1. Covariance Matrices
  • 2. Eigenvalues and Eigenvectors
  • 3. Positive Definiteness
  • 4. Matrix Operations

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

You invest $2m in a bank savings account with a constant interest rate of 5% p.a. What is the value of the investment in 2 years time if interest is compounded quarterly?

  • A. None of them
  • B. $2,208,972
  • C. $2.205,000
  • D. $2,210,342
Answer: B

If A and B are two events with P(A) = 1/4, P(B) = 1/3 and P(A intersection B) =1/5, what is P(Bc | Ac) i.e. the probability of the complement of B when the complement of A is given?

  • A. 37/45
  • B. None of these
  • C. 12/29
  • D. 3/4
Answer: A

You are given the following values of a quadratic function f(x): f(0)=0, f(1)=-2, f(2)=-5. On the basis of these data, the derivative f'(0) is ...

  • A. in the interval ]-2,+[
  • B. in the interval ]-2.5,-2[
  • C. equal to -2
  • D. in the interval ]-,-2.5]
Answer: A

Kurtosis(X) is defined as the fourth centred moment of X, divided by the square of the variance of X.
Assuming X is a normally distributed variable, what is Kurtosis(X)?

  • A. 0
  • B. 2
  • C. 1
  • D. 3
Answer: D

Find the roots, if they exist in the real numbers, of the quadratic equation

  • A. 4 and -2
  • B. No real roots
  • C. 1 and 0
  • D. -4 and 2
Answer: B

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