Study and Prepare with PRMIA 8007 study material, That's Easy to pass With PracticeMaterial!
Updated: Jul 22, 2026
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| Certification Vendor: | PRMIA (Professional Risk Managers' International Association) |
| Exam Name: | Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition |
| Exam Number: | 8007 |
| Certificate Validity Period: | 3 years from passing; must complete all PRM exams within 2 years |
| Related Certifications: | PRMâ„¢ Certification ORM (Operational Risk Manager) |
| Available Languages: | English |
| Exam Price: | $650 - $800 USD (varies by PRMIA membership type) |
| Passing Score: | 60% |
| Real Exam Qty: | 132 |
| Exam Duration: | 120 minutes |
| Exam Format: | Multiple-choice questions, Computer-based, No negative marking |
| Recommended Training: | PRMIA Official Handbook & Study Materials PRMIA Recommended Preparation Resources |
| Exam Registration: | PRMIA Official Registration Pearson VUE Scheduling |
| Sample Questions: | PRMIA 8007 Sample Questions |
| Exam Way: | Online proctored or onsite at Pearson VUE testing centers |
| Pre Condition: | PRMIA membership; bachelor's degree + 2 years experience OR 4 years experience without degree; graduate degree or relevant professional designation may waive experience requirement |
| Official Syllabus URL: | https://prmia.org/Public/PRM/PRM_Handbook_Digital%20Resources.aspx |
| Section | Weight | Objectives |
|---|---|---|
| Linear Algebra and Matrix Theory | 20% | - Matrix operations
|
| Statistics and Regression Analysis | 20% | - Linear regression
|
| Calculus and Functions | 20% | - Single-variable calculus
|
| Numerical Methods & Financial Mathematics | 15% | - Basics of risk modeling - Root finding and approximation - Time value of money |
| Probability Theory | 25% | - Basic probability concepts
|
1. The quarterly compounded rate of return is 6% per annum. What is the corresponding effective annual return?
A) 6%
B) None of the above
C) 1.50%
D) 6.14%
2. You want to test the hypothesis that a population parameter of a regression model is zero. Your alternative hypothesis is that 0. Denote by SD() the estimated standard deviation of , and by MEAN() the estimated mean of . Which test statistic is appropriate, and what is its distribution?
A) test statistic = MEAN()/SD(), normal distribution
B) test statistic = SD()/MEAN(), normal distribution
C) test statistic = SD()/MEAN(), t distribution
D) test statistic = MEAN()/SD(), t distribution
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) -5%
D) 2.50%
4. When the errors in a linear regression show signs of positive autocorrelation, which of the statements below is true?
A) The regression coefficient will be too high and the standard error of the regression coefficient will be understated
B) The regression coefficient will be unbiased, but the standard error of the regression coefficient will be understated
C) The regression coefficient will be unbiased, but the standard error of the regression coefficient will be overstated
D) The regression coefficient will be too low and the standard error of the regression coefficient will be overstated
5. An asset price S is lognormally distributed if:
A) 1/S is normally distributed
B) ln(dS/S) is normally distributed
C) ln(1+dS/S) is normally distributed
D) the change in price (dS) is normally distributed
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: C |
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