8007 Training & Certification Get Latest PRM Updated on Aug 29, 2021
Certification Training for 8007 Exam Dumps Test Engine
NEW QUESTION 12
Newton-Raphson iteration is used to find a solution of x5 - x3 + x = 1. If xn = 2, what is xn+1?
- A. 1.623
- B. 0.377
- C. 2.362
- D. 1.638
Answer: D
NEW QUESTION 13
You intend to invest $100 000 for five years. Four different interest payment options are available. Choose the interest option that yields the highest return over the five year period.
- A. a continuously-compounded rate of 4%
- B. a lump-sum payment of $22 500 on maturity (in five years)
- C. a quarterly-compounded rate of 4.1%
- D. an annually compounded rate of 4.15%
Answer: C
NEW QUESTION 14
Stress testing portfolios requires changing the asset volatilities and correlations to extreme values. Which of the following would lead to a non positive definite covariance matrix?
- A. Changing all the correlations to be zero
- B. All of the above
- C. Changing the volatilities to be greater than 100%
- D. Changing all the correlations to be unity
Answer: D
NEW QUESTION 15
Which of the following is a false statement concerning the probability density function and the cumulative distribution function of a random variable?
- A. the PDF is non-negative.
- B. the definite integral of the PDF from minus infinity to plus infinity is zero.
- C. the definite integral of the CDF from minus infinity to plus infinity is undefined.
- D. the CDF approaches 1 as its argument approaches infinity.
Answer: B
NEW QUESTION 16
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?
- A. The lattice will not recombine
- B. The probability of an up move will not be constant
- C. None of the above
- D. There will always be a downward drift in the lattice
Answer: C
NEW QUESTION 17
What is the indefinite integral of the function f(x) = ln(x), where ln(x) denotes the natural logarithmic function?
- A. 1/x
- B. ln(x) - x
- C. exp(x)
- D. x ln(x) - x
Answer: D
NEW QUESTION 18
An underlying asset price is at 100, its annual volatility is 25% and the risk free interest rate is 5%. A European put option has a strike of 105 and a maturity of 90 days. Its Black-Scholes price is 7.11. The options sensitivities are: delta = -0.59; gamma = 0.03; vega = 19.29. Find the delta-gamma approximation to the new option price when the underlying asset price changes to 105
- A. 6.49
- B. 5.03
- C. 4.59
- D. 4.54
Answer: D
NEW QUESTION 19
Evaluate the derivative of ln(1+ x2) at the point x = 1
- A. 0
- B. 0.5
- C. 1
- D. 2
Answer: C
NEW QUESTION 20
A 2-year bond has a yield of 5% and an annual coupon of 5%. What is the Macaulay Duration of the bond?
- A. 1.86
- B. 0
- C. 1.75
- D. 1.95
Answer: D
NEW QUESTION 21
What is the total derivative of the function f(x,y) = ln(x+y), where ln() denotes the natural logarithmic function?
- A. -x/(x+y) - y/(x+y)
- B. 1 / (x+y)
- C. (x + y) / (x+y)
- D. ln(x+y) x + ln(x+y) y
Answer: C
NEW QUESTION 22
Calculate the determinant of the following matrix:
- A. -4.25
- B. 0
- C. 1
- D. 4.25
Answer: C
NEW QUESTION 23
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
- A. 4%
- B. 24%
- C. 20%
- D. 14.4%
Answer: C
NEW QUESTION 24
The sum of the infinite series 1+1/2+1/3+1/4+1/5+.... equals:
- A. Infinity
- B. 0
- C. 1
- D. 2
Answer: A
NEW QUESTION 25
Which of the provided answers solves this system of equations?
2y - 3x = 3y +x
y2 + x2 = 68
- A. x = -2; y = -8
- B. x = 2; y = 8
- C. x = 2; y = -8
- D. x = 1; y = square root of 67
Answer: C
NEW QUESTION 26
Solve the simultaneous linear equations: x + 2y - 2 = 0 and y - 3x = 8
- A. x = 1, y = 0.5
- B. x = -2, y = 2
- C. x = 2, y = 0
- D. None of the above
Answer: B
NEW QUESTION 27
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 ?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
NEW QUESTION 28
There are two portfolios with no overlapping of stocks or bonds. Portfolio 1 has 6 stocks and 6 bonds.
Portfolio 2 has 4 stocks and 8 bonds. If we randomly select one stock, what is the probability that it came from Portfolio1?
- A. 0.3
- B. 0.5
- C. 0.6
- D. None of these
Answer: C
NEW QUESTION 29
......
Step by Step Guide to Prepare for 8007 Exam: https://www.pdf4test.com/8007-dump-torrent.html
