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PRMIA 8007 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Statistical Analysis | - Descriptive and Inferential Statistics
|
| Topic 2: Calculus | - Differential and Integral Calculus
|
| Topic 3: Risk Measurement Applications | - Quantitative Risk Analysis
|
| Topic 4: Linear Algebra | - Matrix Methods
|
| Topic 5: Numerical Methods | - Quantitative Techniques
|
| Topic 6: Probability Theory | - Fundamental Probability Concepts
|
| Topic 7: Regression and Time Series Analysis | - Modeling Techniques
|
PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition Sample Questions:
For a quadratic equation, which of the following is FALSE?
- A. If the discriminant is positive there are two different real solutions
- B. If the discriminant is negative there are two different real solutions
- C. If the discriminant is zero, there is only one solution
- D. If the discriminant is negative, there are no real solutions
What is the total derivative of the function f(x,y) = ln(x+y), where ln() denotes the natural logarithmic function?
- A. (x + y) / (x+y)
- B. -x/(x+y) - y/(x+y)
- C. 1 / (x+y)
- D. ln(x+y) x + ln(x+y) y
On average, one trade fails every 10 days. What is the probability that no trade will fail tomorrow?
- A. 0.905
- B. 0.95
- C. 0.095
- D. 0.100
A simple linear regression is based on 100 data points. The total sum of squares is 1.5 and the correlation between the dependent and explanatory variables is 0.5. What is the explained sum of squares?
- A. 0.375
- B. 1.125
- C. 0.3333
- D. 0.75
The correlation between two asset returns is 0.5. What is the largest eigenvalue of their correlation matrix?
- A. 0.5
- B. 1
- C. None of the above
- D. 1.5






