Free PRMIA 8007 Exam Actual Questions

The questions for 8007 were last updated On Nov 9, 2024

Question No. 1

What is a Hessian?

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Correct Answer: C

Question No. 2

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?

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Correct Answer: D

Question No. 3

Consider an investment fund with the following annual return rates over 8 years: +6%, -6%, +12%, -12%, +3%, -3%, +9%, -9% .

What can you say about the annual geometric and arithmetic mean returns of this investment fund?

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Correct Answer: A

Question No. 4

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?

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Correct Answer: A

Question No. 5

The Newton-Raphson method

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Correct Answer: B