PRMIA Mathematical Foundations of Risk Measurement :II 8002 P R M Exam Practice Test

Identify the type and common element (that is, common ratio or common difference) of the following sequence: 6, 12, 24

Consider two securities X and Y with the following 5 annual returns:

X: +10%, +3%, -2%, +3%, +5%

Y: +7%, -2%, +3%, -5%, +10%

In this case the sample covariance between the two time series can be calculated as:

Which statement regarding the matrix below is true?

Over four consecutive years fund X returns 1%, 5%, -3%, 8%. What is the average growth rate of fund X over this period?

You invest $2m in a bank savings account with a constant interest rate of 5% p.a. What is the value of the investment in 2 years time if interest is compounded quarterly?

The gradient of a function f(x, y, z) = x + y2 - x y z at the point x = y = z = 1 is

Consider two functions f(x) and g(x) with indefinite integrals F(x) and G(x), respectively. The indefinite integral of the product f(x)g(x) is given by