Free PRMIA 8007 Practice Exam with Questions & Answers | Set: 4

Two vectors are orthogonal when:

On average, one trade fails every 10 days. What is the probability that no trade will fail tomorrow?

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?

Consider a binomial lattice where a security price S moves up by a factor u with probability p, or down by a factor d with probability 1 - p. If we set d > 1/u then which of the following will be TRUE?

Your stockbroker randomly recommends stocks to his clients from a tip sheet he is given each day. Today, his tip sheet has 3 common stocks and 5 preferred stocks from Asian companies and 3 common stocks and 5 preferred stocks from European companies. What is the probability that he will recommend a common stock AND/OR a European stock to you when you call and ask for one stock to buy today?

Evaluate the derivative of ln(1+ x2) at the point x = 1

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

What can be said about observations of random variables that are i.i.d. a normally distributed?

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