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8002 Exam Dumps : PRM Certification - Exam II: Mathematical Foundations of Risk Measurement

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PRM Certification - Exam II: Mathematical Foundations of Risk Measurement Questions and Answers

Question 1

Which of the following statements is true for symmetric positive definite matrices?

Options:

A.

Its eigenvalues are all positive

B.

One of its eigenvalues equals 0

C.

If a is its eigenvalue, then -a is also its eigenvalue

D.

If a is its eigenvalue, then is also its eigenvalue

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Question 2

What is the sum of the first 20 terms of this sequence: 3, 5, 9, 17, 33, 65,…?

Options:

A.

1 048 574

B.

1 048 595

C.

2 097 170

D.

2 097 172

Question 3

Your stockbroker randomly recommends stocks to his clients from a tip sheet he is given each day. Today, his tip sheet has 3 common stocks and 5 preferred stocks from Asian companies and 3 common stocks and 5 preferred stocks from European companies. What is the probability that he will recommend a common stock AND/OR a European stock to you when you call and ask for one stock to buy today?

Options:

A.

11/16

B.

7/8

C.

9/16

D.

None of these