Free PRMIA 8002 Exam Dumps Questions & Answers

The natural logarithm of x is:

• A.the inverse function of exp(x)
• B.always greater than x, for x>0
• C.log(e)
• D.46

A quadratic form is

• A.a specific solution of the Black-Scholes pricing formula
• B.defined as a positive definite Hessian matrix.
• C.an algebraic expression in two variables, x and y,involving , and terms.
• D.an algebraic expression in two variables, x and y, involving , , and terms.

The first derivative of a function f(x) is zero at some point, the second derivative is also zero at this point. This means that:

• A.f has necessarily a minimum at this point
• B.f might have either a minimum or a maximum or neither of them at this point
• C.f has necessarily a maximum at this point
• D.f has necessarily neither a minimum nor a maximum at this point

What is the indefinite integral of the function f(x) = ln(x), where ln(x) denotes the natural logarithmic function?

• A.x ln(x) - x
• B.ln(x) - x
• C.exp(x)
• D.1/x

Suppose 60% of capital is invested in asset 1, with volatility 40% and the rest is invested in asset 2, with volatility 30%. If the two asset returns have a correlation of -0.5, what is the volatility of the portfolio?

• A.36.33%
• B.36%
• C.20.78%
• D.26.33%