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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

I have a portfolio of two stocks. The weights are 60% and 40% respectively, the volatilities are both 20%, while the correlation of returns is 100%. The volatility of my portfolio is

Options:

A.

4%

B.

14.4%

C.

20%

D.

24%

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Question 2

Suppose that f(x) and g(x,y) are functions. What is the partial derivative of f(g(x,y)) with respect to y?

Options:

A.

f'(g(x,y))

B.

f(dg/dy)

C.

f(g(x,y)) dg/dy

D.

f'(g(x,y)) dg/dy

Question 3

Which of the following properties is exhibited by multiplication, but not by addition?

Options:

A.

associativity

B.

commutativity

C.

distributivity

D.

invertibility