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Not sure whether SureTorrent is right for you? Download the free 8002 demo and review a sample of our PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement practice questions before you spend a cent.

PRMIA 8002 Exam Overview:

Certification Vendor:PRMIA
Exam Name:PRM Certification - Exam II: Mathematical Foundations of Risk Measurement
Exam Number:8002
Available Languages:English
Related Certifications:PRM Certification
Exam Format:Multiple Choice Questions
Recommended Training:PRMIA Official Study Resources
Exam Registration:PRMIA Official Certification Registration
Sample Questions: DOWNLOAD DEMO
Exam Way:Computer-based exam delivered via PRMIA authorized testing centers or online proctored format depending on region.
Pre Condition:Recommended completion of PRM Exam I (Foundations of Risk Management) before attempting Exam II.
Official Syllabus URL:https://www.prmia.org

PRMIA 8002 Exam Syllabus Topics:

SectionObjectives
Financial Risk Measurement Mathematics- Risk metrics
  • 1. Expected Shortfall (Conditional VaR)
    • 2. Value at Risk (VaR)
      - Distribution modeling for risk
      • 1. Extreme value theory basics
        • 2. Normal and heavy-tailed distributions
          Probability Theory Foundations- Random variables and probability distributions
          • 1. Discrete and continuous distributions
            • 2. Joint, marginal, and conditional distributions
              - Expectation and moments
              • 1. Law of large numbers and central limit theorem
                • 2. Mean, variance, skewness, kurtosis
                  Statistical Inference- Estimation theory
                  • 1. Maximum likelihood estimation
                    • 2. Point and interval estimation
                      - Hypothesis testing
                      • 1. t-tests and chi-square tests
                        • 2. Type I and Type II errors
                          Portfolio and Time Series Foundations- Portfolio theory
                          • 1. Efficient frontier concept
                            • 2. Mean-variance optimization
                              - Time series analysis basics
                              • 1. AR/MA model intuition
                                • 2. Stationarity and autocorrelation
                                  Correlation and Regression Analysis- Linear regression models
                                  • 1. Model diagnostics and assumptions
                                    • 2. Simple and multiple regression
                                      - Correlation structures
                                      • 1. Dependence and linear relationships
                                        • 2. Covariance and correlation matrices

                                          PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement: Common Questions From Candidates

                                          The PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement exam (code: 8002) is the official PRMIA exam that leads to the Professional Risk Manager (PRM) certification. It sits at the Professional level of the PRMIA certification track. It is also connected with related credentials such as PRM Certification. Passing it proves to employers that your skills have been validated by PRMIA itself, which is why the 8002 credential keeps showing up in job postings.

                                          According to PRMIA, the following applies: Recommended completion of PRM Exam I (Foundations of Risk Management) before attempting Exam II.. Certification policies do change from time to time, so confirm the latest requirements on the official exam page at https://www.prmia.org before you register.

                                          You can book your PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement exam through the official channels below:

                                          Depending on availability in your region, the exam is delivered as Computer-based exam delivered via PRMIA authorized testing centers or online proctored format depending on region..

                                          PRMIA lists the following training options for PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement candidates:

                                          Official courses build a solid foundation, and pairing them with the 132 practice questions from SureTorrent shows you how ready you really are before you spend money on the exam itself.

                                          Yes. SureTorrent offers a free 8002 PDF demo so you can review the question style, difficulty, and explanations before committing to anything. After purchase, your PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement material includes 365 days of free updates, and if your product expires after that, you can extend the update service at a 50% discount from your member zone.

                                          If you take the corresponding 8002 exam within 60 days of your purchase and do not pass, you can apply for a full refund under our 100% Money Back Guarantee, subject to a few conditions: the failed exam must be the one matching your purchase; sitting the exam within 3 days of purchase does not qualify, since that leaves too little preparation time; downloading the material without actually taking the exam does not qualify; free materials and expired orders are excluded; and the candidate name must match the payer name. To apply, send a scanned copy of your enrollment slip together with your official Score Report (PDF) within 2 days after the exam, and claims are processed within 7 days. If you would rather not take a refund, you can exchange your purchase for two free products of equal value while keeping the update service on the product you originally bought. As for delivery, everything is an instant download: your products are sent to your email within one minute of payment — contact customer service if nothing arrives within 2 hours — and there is no limit on the number of computers you can install the software on.

                                          The official PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement syllabus is organized into 5 main domains. The first three are Financial Risk Measurement Mathematics, Portfolio and Time Series Foundations, and Correlation and Regression Analysis. For the full domain-by-domain breakdown, see the complete Exam Topics outline above.

                                          PRMIA PRM Certification - Exam II: Mathematical Foundations of Risk Measurement Sample Questions:

                                          Question #1

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

                                          • A. If a is its eigenvalue, then is also its eigenvalue
                                          • B. If a is its eigenvalue, then -a is also its eigenvalue
                                          • C. Its eigenvalues are all positive
                                          • D. One of its eigenvalues equals 0
                                          Reveal Solution  Discussion  0

                                          Correct Answer: C  🗳️

                                          Question #2

                                          An operational risk analyst models the occurrence of computer failures as a Poisson process with an arrival rate of 2 events per year. According to this model, what is the probability of zero failures in one year?

                                          • A. 0.25
                                          • B. 0.50
                                          • C. 0.02
                                          • D. 0.14
                                          Reveal Solution  Discussion  0

                                          Correct Answer: D  🗳️

                                          Question #3

                                          An option has value 10 when the underlying price is 99 and value 9.5 when the underlying price is
                                          101. Approximate the value of the option delta using a first order central finite difference.

                                          • A. -0.5
                                          • B. -4
                                          • C. 0.25
                                          • D. -0.25
                                          Reveal Solution  Discussion  0

                                          Correct Answer: D  🗳️

                                          Question #4

                                          Let N(.) denote the cumulative distribution function of the standard normal probability distribution, and N' its derivative. Which of the following is false?

                                          • A. N(0) = 0.5
                                          • B. N'(x) 0 as x
                                          • C. N(x) 0 as x
                                          • D. N'(0) 0
                                          Reveal Solution  Discussion  0

                                          Correct Answer: C  🗳️

                                          Question #5

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

                                          • A. 45 degrees
                                          • B. 90 degrees
                                          • C. 180 degrees
                                          • D. 57 degrees
                                          Reveal Solution  Discussion  0

                                          Correct Answer: B  🗳️

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