Introduction of PRMIA 8002 Exam!

PRMIA 8002 is a certification exam for the Professional Risk Manager (PRM) designation. It is a comprehensive exam that tests a candidate's knowledge of risk management principles, practices, and techniques. The exam covers topics such as risk management frameworks, risk management processes, risk management tools, and risk management strategies.

What is the Duration of PRMIA 8002 Exam?

The duration of the PRMIA 8002 exam is 3 hours.

What are the Number of Questions Asked in PRMIA 8002 Exam?

There are a total of 100 questions on the PRMIA 8002 exam.

What is the Passing Score for PRMIA 8002 Exam?

The passing score required for the PRMIA 8002 exam is 70%.

What is the Competency Level required for PRMIA 8002 Exam?

The PRMIA 8002 exam is a professional-level exam, so it requires a high level of competency. Candidates should have a thorough understanding of the concepts and principles of risk management, as well as a strong knowledge of the tools and techniques used to manage risk. Candidates should also have a good understanding of the regulatory environment and the implications of risk management decisions.

What is the Question Format of PRMIA 8002 Exam?

The PRMIA 8002 Exam consists of 100 multiple-choice questions. All questions are multiple-choice and are based on the PRMIA syllabus.

How Can You Take PRMIA 8002 Exam?

PRMIA 8002 exams are offered in both an online and a testing center format. The online exam format can be accessed through the PRMIA website and requires a valid PRMIA account to register and take the exam. The testing center format requires you to register and schedule with a testing center in your local area. You will need to bring two forms of identification and you may be required to pay a proctor fee. Both the online and testing center formats require you to have a basic understanding of the PRMIA 8002 exam topics before taking the exam.

What Language PRMIA 8002 Exam is Offered?

The PRMIA 8002 Exam is offered in English.

What is the Cost of PRMIA 8002 Exam?

The cost of the PRMIA 8002 exam is $225 USD.

What is the Target Audience of PRMIA 8002 Exam?

The target audience for the PRMIA 8002 Exam is people who have completed the PRMIA 8004 Exam, have at least 3 years of professional risk management experience, and have a strong foundation of risk management principles and practices. This exam is intended for professionals looking to demonstrate their knowledge and understanding of risk management principles and practices.

What is the Average Salary of PRMIA 8002 Certified in the Market?

The average salary of PRM Certification - Exam II: Mathematical Foundations of Risk Measurement certified professionals varies widely by role, region, and experience, because it depends on the job the certification is combined with. Check current listings in your market for an up-to-date figure.

Who are the Testing Providers of PRMIA 8002 Exam?

Several organizations offer testing for the PRMIA 8002 exam, including Prometric, Pearson VUE, and Kryterion.

What is the Recommended Experience for PRMIA 8002 Exam?

The recommended experience for PRMIA 8002 Exam is two years of professional risk management experience. The exam focuses on risk management in banking, capital markets, and investments. It covers topics such as financial instruments and markets, portfolio risk, credit risk, market risk, and operational risk. The exam also tests knowledge of risk management principles, tools, and techniques.

What are the Prerequisites of PRMIA 8002 Exam?

There is no specific prerequisite for taking the PRMIA 8002 exam. However, it is recommended that candidates have at least three years of experience in risk management or related fields and have already taken the PRMIA 8003 exam. Additionally, a good understanding of the PRMIA body of knowledge is recommended.

What is the Expected Retirement Date of PRMIA 8002 Exam?

The PRMIA 8002 exam is the current version of the PRM Certification - Exam II: Mathematical Foundations of Risk Measurement exam, and PRMIA has not announced a retirement date for it. When PRMIA introduces a newer version, the retirement date for the older version is published on the PRMIA certification site.

What is the Difficulty Level of PRMIA 8002 Exam?

The difficulty level of the PRMIA 8002 exam varies depending on the individual. However, the exam is generally considered to be of moderate difficulty.

What is the Roadmap / Track of PRMIA 8002 Exam?

The PRMIA 8002 Exam is a certification track and roadmap developed by the Professional Risk Managers’ International Association (PRMIA) to assess and certify individuals who demonstrate a comprehensive knowledge of risk management principles and practices. The exam is divided into four sections: Foundations of Risk Management, Quantitative Analysis, Financial Markets and Products, and Professional Practices. Upon successful completion of the exam, individuals are awarded the PRMIA 8002 certification.

What are the Topics PRMIA 8002 Exam Covers?

The PRMIA 8002 exam covers a variety of topics related to risk management. These topics include: 1. Risk Management Principles: This section covers the foundational concepts of risk management, including the definition of risk, risk management processes, and the risk management framework. 2. Risk Measurement and Modeling: This section covers the concepts of risk measurement and modeling, including probability distributions, Monte Carlo simulations, and VaR models. 3. Risk Management Strategies: This section covers the strategies used to manage risk, such as hedging and diversification. 4. Risk Management Applications: This section covers the application of risk management principles in various markets, such as commodities, foreign exchange, and derivatives. 5. Regulatory and Compliance Issues: This section covers the regulatory and compliance requirements for risk management, including Basel III, Dodd-Frank, and Sarbanes-Oxley.

What are the Sample Questions of PRMIA 8002 Exam?

1. What are the key components of a risk management framework? 2. How can risk management be used to inform strategic decisions? 3. What are the different types of risk management models? 4. How can organizations use stress testing to identify and manage risk? 5. What are the legal and regulatory requirements for risk management? 6. How can organizations use scenario analysis to assess risk? 7. What are the principles of enterprise risk management? 8. How can organizations use capital allocation to manage risk? 9. What are the key considerations for credit risk management? 10. How can organizations use operational risk management to reduce losses?

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Free 8002 – PRM Certification - Exam II: Mathematical Foundations of Risk Measurement Practice Test Question

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Showing 1–10 of 10 questions

Question 1

Let X be a random variable normally distributed with zero mean and let . Then the correlation between X and Y is:

Select an option, then click Submit answer.

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negative
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zero
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not defined
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positive

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Question 2

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?

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The lattice will not recombine
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The probability of an up move will not be constant
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There will always be a downward drift in the lattice
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None of the above

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Question 3

What is the total derivative of the function f(x,y) = ln(x+y), where ln() denotes the natural logarithmic function?

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1 / (x+y)
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(∆x + ∆y) / (x+y)
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-∆x/(x+y) - ∆y/(x+y)
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ln(x+y) ∆x + ln(x+y) ∆y

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Question 4

The bisection method can be used for solving f(x)=0 for a unique solution of x, when

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The function f(x) is continuous and monotonic
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The function f(x) is differentiable
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The function f(x) is differentiable and we have an explicit expression for the derivative
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The function f(x) is continuous

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Question 5

The first derivative of a function f(x) is zero at some point, the second derivative is also zero at this point. This means that:

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f has necessarily a minimum at this point
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f has necessarily a maximum at this point
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f has necessarily neither a minimum nor a maximum at this point
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f might have either a minimum or a maximum or neither of them at this point

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Question 6

An asset price S is lognormally distributed if:

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the change in price (dS) is normally distributed
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1/S is normally distributed
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ln(dS/S) is normally distributed
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ln(1+dS/S) is normally distributed

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Question 7

A linear regression gives the following output:

Figures in square brackets are estimated standard errors of the coefficient estimates. What is the value of the test statistic for the hypothesis that the coefficient of is zero against the alternative that is less than zero?

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0.125
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2.5
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-1.25
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-2.5

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Question 8

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

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6.49
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5.03
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4.59
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4.54

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Question 9

You invest $100 000 for 3 years at a continuously compounded rate of 3%. At the end of 3 years, you redeem the investment. Taxes of 22% are applied at the time of redemption. What is your approximate after-tax profit from the investment, rounded to $10?

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$9420
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$7350
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$7230
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$7100

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Question 10

A quadratic form is

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defined as a positive definite Hessian matrix.
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an algebraic expression in two variables, x and y, involving , and terms.
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a specific solution of the Black-Scholes pricing formula
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an algebraic expression in two variables, x and y, involving , , and terms.

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About the 8002 Free Practice Test

This page holds a free practice test for the PRM Certification - Exam II: Mathematical Foundations of Risk Measurement (8002) certification from PRMIA. The 10 questions come free from the full 132-question Study4Pass practice set — a quick, honest check of where you stand. The free sample is made up of 10 single-answer questions, each with a full explanation. The set follows the real exam’s spread of topics: Risk Management Principles, Risk Measurement and Modeling, Risk Management Strategies and Risk Management Applications. PRMIA 8002 is a certification exam for the Professional Risk Manager (PRM) designation.

The target audience for the PRMIA 8002 Exam is people who have completed the PRMIA 8004 Exam, have at least 3 years of professional risk management experience, and have a… There is no specific prerequisite for taking the PRMIA 8002 exam.

Certification: PRM Certification - Exam II: Mathematical Foundations of Risk Measurement (8002)
Vendor: PRMIA
Free on this page: 10 practice questions with answers and explanations
Full practice set: 132 questions

Work through the questions one at a time and read every explanation, even for the ones you get right — the reasoning behind an answer is what the real exam tests. If one area keeps costing you marks, you have found exactly what to revise before exam day.

Think of the result as a map, not a verdict. The questions you miss point straight at the topics that need work, and the explanations tell you why the correct option wins. Candidates who loop through that cycle — practise, review the reasoning, re-test — walk into the real exam having already seen their weak spots and fixed them.

Inside the full 8002 practice set:

All 132 questions with answers and explanations
Timed Exam Simulation that mirrors the real exam pressure
Topic Training to drill one domain at a time
Ask AI for More Explanation on every question
Flag questions and review them before you finish

How to use this 8002 free practice test

There is no clock and no account needed. Answer each question, check the result, and read the explanation before moving on. For anything that still feels unclear, Ask AI is built into this AI-Enabled practice test — it explains the concept behind the question so the next one like it gets easier. Ready for more? The full 132-question set adds a timed Exam Simulation mode, topic training for your weak areas, and a flagged-question review, so you can practise the way the real exam feels.

What to study for each 8002 domain

Risk Management Principles — This section covers the foundational concepts of risk management, including the definition of risk, risk management processes, and the risk management framework.
Risk Measurement and Modeling — This section covers the concepts of risk measurement and modeling, including probability distributions, Monte Carlo simulations, and VaR models.
Risk Management Strategies — This section covers the strategies used to manage risk, such as hedging and diversification.
Risk Management Applications — This section covers the application of risk management principles in various markets, such as commodities, foreign exchange, and derivatives.
Regulatory and Compliance Issues — This section covers the regulatory and compliance requirements for risk management, including Basel III, Dodd-Frank, and Sarbanes-Oxley.

8002 practice test — quick questions

Is this 8002 practice test free?

Yes — the 10 questions on this page are completely free, with no signup and no payment details needed.

How many questions are in the full 8002 set?

132 questions. The 10 free questions above are a sample of that full set, in the same style and topic balance.

Does the free test show the answers?

Yes — every question shows the correct answer with an explanation, and Ask AI can explain the concept behind a question in plain words if you want to go deeper.