Free PRMIA 8013 Exam Questions
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PRMIA 8013 Exam Questions
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Provided By: PRMIA
- Exam: PRM Exam 1: Finance Foundations
- Certification: PRM
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Total Questions: 290
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Updated On: Mar 27, 2025
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Rated: 4.9 |
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Online Users: 580
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Question 1
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Which of the following statements is true:I. The standard deviation of a short position is the same as the standard deviation of a long positionII. The expected return of a short position is the same as that a long position in the same assetIII. If two assets are perfectly positively correlated, then a short position in one and a long position in theother are negatively correlated IV. If we increase the weight of an asset in a portfolio, its correlation with other assets in the portfolio scales
up proportionately
Answer: C
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Which of the following statements is true:I. The standard deviation of a short position is the same as the standard deviation of a long positionII. The expected return of a short position is the same as that a long position in the same assetIII. If two assets are perfectly positively correlated, then a short position in one and a long position in theother are negatively correlated IV. If we increase the weight of an asset in a portfolio, its correlation with other assets in the portfolio scales
up proportionately
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Question 2
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Which of the following portfolios would require rebalancing for delta hedging at a greater frequency in order
to maintain delta neutrality?
Answer: B
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Which of the following portfolios would require rebalancing for delta hedging at a greater frequency in order
to maintain delta neutrality?
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Question 3
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Which of the following will have the effect of increasing the duration of a bond, all else remaining equal:I. Increase in bond couponII. Increase in bond yieldIII. Decrease in coupon frequency IV. Increase in bond maturity
Answer: A
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Which of the following will have the effect of increasing the duration of a bond, all else remaining equal:I. Increase in bond couponII. Increase in bond yieldIII. Decrease in coupon frequency IV. Increase in bond maturity
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Question 4
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A currency with a lower interest rate will trade:
Answer: B
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A currency with a lower interest rate will trade:
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Question 5
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An early exercise of an American call option is advisable whenever the option is deep in the money and
delta approaches 1
Answer: B
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An early exercise of an American call option is advisable whenever the option is deep in the money and
delta approaches 1