Free Practice PRMIA 8013 Exam Questions 2025

Stay ahead with 100% Free PRM Exam 1: Finance Foundations 8013 Dumps Practice Questions

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Total 290 Questions | Updated On: Apr 21, 2025

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Question 1

By market convention, which of the following currencies are not quoted in terms of 'direct quotes' versus the USD?

A : EUR

B : EUR

C : KWD

Answer: A

Question 2

Which of the following describes the efficient frontier most accurately?

A : The efficient frontier identifies portfolios with the lowest level of volatility for the lowest possible returns

B : The efficient frontier identifies portfolios with the highest return for a given level of volatility

C : The efficient frontier identifies portfolios with the highest level of volatility for a given level of returns

D : None of the above

Answer: B

Question 3

For a forward contract on a commodity, an increase in carrying costs (all other factors remaining constant) has the effect of:

A : increasing the forward price

B : decreasing the forward price

C : increasing the spot price

D : decreasing the spot price

Answer: A

Question 4

By market convention, which of the following currencies are not quoted in terms of 'direct quotes' versus the USD?

A : EUR

B : EUR

C : KWD

Answer: A

Question 5

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

A : I, II, III and IV

B : II and IV

C : I and III

D : II, III and IV

Answer: C

Page: 1 / 58

Total 290 Questions | Updated On: Apr 21, 2025

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