Pass the PRMIA PRM Certification 8002 Questions and answers with ExamsMirror

In statistical hypothesis tests, 'Type I error' refers to the situation in which…

If the annual volatility of returns is 25% what is the variance of the quarterly returns?

What is the angle between the following two three dimensional vectors: a=(1,2,3), b=(-4,2,0)?

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:

Exploring a regression model for values of the independent variable that have not been observed is most accurately described as…

You are given the following regressions of the first difference of the log of a commodity price on the lagged price and of the first difference of the log return on the lagged log return. Each regression is based on 100 data points and figures in square brackets denote the estimated standard errors of the coefficient estimates:

Which of the following hypotheses can be accepted based on these regressions at the 5% confidence level (corresponding to a critical value of the Dickey Fuller test statistic of – 2.89)?

The gradient of a smooth function is

Let f(x) = c for x in [0,4] and 0 for other values of x.

What is the value of the constant c that makes f(x) a probability density function; and what if f(x) = cx for x in [0,4]?

What is the total derivative of the function f(x,y) = ln(x+y), where ln() denotes the natural logarithmic function?

If a random variable X has a normal distribution with mean zero and variance 4, approximately what proportion of realizations of X should lie between -4 and +4?