Free PRMIA 8007 Exam Actual Questions & Explanations

Last updated on: May 30, 2026

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Question No. 1

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

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Correct Answer: D

Question No. 2

When the errors in a linear regression show signs of positive autocorrelation, which of the statements below is true?

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Correct Answer: D

Question No. 3

A bond has modified duration 6 and convexity 30. Find the duration-convexity approximation to the percentage change in bond price when its yield increases by 5 basis points

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Correct Answer: D

Question No. 4

Which of the following statements about skewness of an empirical probability distribution are correct?

1. When sampling returns from a time series of asset prices, discretely compounded returns exhibit higher skewness than continuously compounded returns

2. When the mean is significantly less than the median, this is an indication of negative skewness

3. Skewness is a sign of asymmetry in the dispersion of the data

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Correct Answer: A

Question No. 5

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

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Correct Answer: C