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

Exam Code: 8007

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

Updated: Oct 10, 2026

Q & A: 133 Questions and Answers

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

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PRMIA 8007 Exam Syllabus Topics:

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

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

Question #1

I have $5m to invest in two stocks: 75% of my capital is invested in stock 1 which has price 100 and the rest is invested in stock 2, which has price 125. If the price of stock 1 falls to 90 and the price of stock 2 rises to 150, what is the return on my portfolio?

  • A. -2.50%
  • B. 2.50%
  • C. -5%
  • D. 5%
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #2

Evaluate the derivative of ln(1+ x2) at the point x = 1

  • A. 1
  • B. 0.5
  • C. 2
  • D. 0
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #3

If a random variable X has a normal distribution with mean zero and variance 4, approximately what proportion of realizations of X should lie between -4 and +4?

  • A. 66.60%
  • B. 95%
  • C. 90%
  • D. 99%
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

Question #4

The fundamental theorem of analysis establishes a relation between

  • A. First and second derivative of a function
  • B. The derivative of a function and the derivative of its inverse function
  • C. Integration and differentiation of functions
  • D. The derivative of a function and the slope of its graph
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #5

Solve the simultaneous linear equations: x + 2y - 2 = 0 and y - 3x = 8

  • A. x = 2, y = 0
  • B. x = 1, y = 0.5
  • C. None of the above
  • D. x = -2, y = 2
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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