Real PRMIA 8007 practice exam questions for easy pass!
Updated: Aug 16, 2026
No. of Questions: 133 Questions & Answers with Testing Engine
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| Certification Vendor: | PRMIA |
| Exam Name: | Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition |
| Exam Number: | 8007 |
| Related Certifications: | Professional Risk Manager (PRM) Certification Exam I: Finance Theory, Financial Instruments and Financial Markets - 2015 Edition Exam III: Risk Management Frameworks, Operational Risk, Credit Risk, Counterparty Risk, Market Risk, ALM, FTP - 2015 Edition Exam IV: Case Studies, Standards, Governance, Best Practices and Ethics - 2015 Edition |
| Exam Price: | USD 200 |
| Real Exam Qty: | 24 |
| Certificate Validity Period: | Part of PRM Certification Program; exam credits remain valid subject to PRMIA certification policies |
| Exam Format: | Multiple Choice |
| Exam Duration: | 120 minutes |
| Available Languages: | English |
| Passing Score: | 60% |
| Sample Questions: | PRMIA 8007 Sample Questions |
| Exam Way: | Computer-based testing through authorized PRMIA testing providers; available at testing centers and online where offered. |
| Pre Condition: | No formal prerequisite examination required. Candidates pursuing the PRM designation must successfully complete all required PRM examinations and satisfy PRMIA certification requirements. |
| Official Syllabus URL: | https://prmia.org/ |
| Section | Objectives |
|---|---|
| Topic 1: Regression and Time Series Analysis | - Modeling Techniques
|
| Topic 2: Numerical Methods | - Quantitative Techniques
|
| Topic 3: Statistical Analysis | - Descriptive and Inferential Statistics
|
| Topic 4: Probability Theory | - Fundamental Probability Concepts
|
| Topic 5: Risk Measurement Applications | - Quantitative Risk Analysis
|
| Topic 6: Linear Algebra | - Matrix Methods
|
| Topic 7: Calculus | - Differential and Integral Calculus
|
1. What is the simplest form of this expression: log2(165/2)
A) 32
B) log2 (5/2) + log2(16)
C) 5/2 + log2(16)
D) 10
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 = SD()/MEAN(), normal distribution
B) test statistic = SD()/MEAN(), t distribution
C) test statistic = MEAN()/SD(), t distribution
D) test statistic = MEAN()/SD(), normal distribution
3. You intend to invest $100 000 for five years. Four different interest payment options are available. Choose the interest option that yields the highest return over the five year period.
A) a lump-sum payment of $22 500 on maturity (in five years)
B) a quarterly-compounded rate of 4.1%
C) a continuously-compounded rate of 4%
D) an annually compounded rate of 4.15%
4. Suppose a discrete random variable can take on the values -1, 0 and 1 each with a probability of 1/3. Then the mean and variance of the variable is
A) mean is 0, variance is 2/3
B) mean is 0, variance is 1/2
C) mean is 0, variance is 1/3
D) mean is 1/3, variance is 1/3
5. Evaluate the derivative of exp(x2 + 2x + 1) at the point x = -1
A) 1
B) 0.5
C) 2
D) 0
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: A | Question # 5 Answer: D |
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