Pass the PRMIA PRM Certification 8007 Questions and answers with ExamsMirror

I have a portfolio of two stocks. The weights are equal. The one volatility is 30% while the other is 40%. The minimum and maximum possible values of the volatility of my portfolio are:

Let X be a random variable distributed normally with mean 0 and standard deviation 1. What is the expected value of exp(X)?

What is a Hessian?

A 2-year bond has a yield of 5% and an annual coupon of 5%. What is the Modified Duration of the bond?

For a quadratic equation, which of the following is FALSE?

What is the maximum value of the function F(x, y)=x2+y2 in the domain defined by inequalities x ≤ 1, y ≥ -2, y-x ≤ 3 ?

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?

The correlation between two asset returns is 0.5. What is the largest eigenvalue of their correlation matrix?

A linear regression gives the following output:

Figures in square brackets are estimated standard errors of the coefficient estimates.

Which of the following is an approximate 95% confidence interval for the true value of the coefficient of ?

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]?