Practice 8007 Exam Online

Question 1

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

A : The function f(x) is continuous and monotonic

B : The function f(x) is differentiable

C : The function f(x) is differentiable and we have an explicit expression for the derivative

D : The function f(x) is continuous

E :

Answer: A

Question 2

Which of the following is a false statement concerning the probability density function and the cumulative distribution function of a random variable?

A : the PDF is non-negative.

B : the definite integral of the CDF from minus infinity to plus infinity is undefined.

C : the CDF approaches 1 as its argument approaches infinity.

D : the definite integral of the PDF from minus infinity to plus infinity is zero.

Answer: D

Question 3

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 : -5%

C : 2.50%

D : 5%

Answer: A

Question 4

Assume that 40% of all financial organizations investigated by authorities turn out to be fraudulent.

What is the probability of randomly investigating 2 different organizations and finding that neither is fraudulent; and what is the probability of finding exactly one being fraudulent?

A : 2/5 and 1/2

B : 2/5 and 3/5

C : 1/3 and 8/17

D : 9/25 and 12/25

Answer: D

Question 5

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

A : 4 and -2

B : -4 and 2

C : 1 and 0

D : No real roots

Answer: D

Name:	Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition
Exam Code:	8007
Certification:	PRM
Vendor:	PRMIA
Total Questions:	135
Last Updated:	Apr 24, 2024

PRMIA 8007