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  • Exam Name: Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition
  • Last Update: 25-Apr-2024
  • Questions and Answers: 132
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Get 8007 Dumps : Verified Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition

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8007 Questions and Answers

Question # 1

What is the 40th term in the following series: 4, 14, 30, 52, …?

A.

240

B.

4598

C.

4840

D.

4960

Question # 2

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

A.

The regression coefficient will be too high and the standard error of the regression coefficient will be understated

B.

The regression coefficient will be too low and the standard error of the regression coefficient will be overstated

C.

The regression coefficient will be unbiased, but the standard error of the regression coefficient will be understated

D.

The regression coefficient will be unbiased, but the standard error of the regression coefficient will be overstated

Question # 3

I have a portfolio of two stocks. The weights are equal. The one volatility is 30% while the other is 40%. The minimum and maximum possible values of the volatility of my portfolio are:

A.

30% and 40%

B.

5% and 35%

C.

10% and 40%

D.

10% and 70%

Question # 4

Which of the provided answers solves this system of equations?

2y – 3x = 3y +x

y2 + x2 = 68

A.

x = 1; y = square root of 67

B.

x = 2; y = 8

C.

x = 2; y = -8

D.

x = -2; y = -8

Question # 5

Maximum likelihood estimation is a method for:

A.

Finding parameter estimates of a given density function

B.

Estimating the solution of a partial differential equation

C.

Solving a portfolio optimization problem

D.

Estimating the implied volatility of a simple European option

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