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PRMIA 8006 Exam Overview:

Certification Vendor:Professional Risk Managers' International Association (PRMIA)
Exam Name:Exam I: Finance Theory, Financial Instruments, Financial Markets - 2015 Edition
Exam Number:8006
Exam Duration:240 minutes
Passing Score:Not publicly specified (PRM exams use scaled scoring with minimum passing threshold determined by PRMIA)
Real Exam Qty:60
Exam Price:Varies by country / PRMIA pricing via Pearson VUE
Exam Format:Multiple Choice
Available Languages:English
Certificate Validity Period:Certification valid once PRM designation completed; continuing membership required for active use of designation
Related Certifications:PRM Designation (full credential requiring Exam I + Exam II)
PRM Exam II: Mathematical Foundations of Risk Measurement
Sample Questions:PRMIA 8006 Sample Questions
Exam Way:Computer-based exam administered through Pearson VUE test centers or remote proctoring
Pre Condition:Enrollment in PRMIA professional program and payment of exam registration/authorization; no formal prerequisites beyond PRMIA application
Official Syllabus URL:https://prmia.org/PRMExamPrep

PRMIA 8006 Exam Syllabus Topics:

SectionObjectives
Financial Markets- Market Efficiency and Funding Rates
- Trade Lifecycle, Clearing and Settlement
- Structure and Participants in Global Markets
Finance Theory- Risk and Risk Aversion
- Capital Asset Pricing Model and Multifactor Models
- Portfolio Mathematics & Asset Allocation
- Capital Structure and Term Structure of Interest Rates
Financial Instruments- Valuation Principles and Yields
- Equities, Bonds, and Money Market Instruments
- Derivatives: Futures, Forwards, Options, Swaps

Frequently Asked Questions About PRMIA Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition

The 8006 exam leads to the PRM certification, a Professional-level credential from PRMIA. It validates the skills measured by the PRMIA Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition syllabus and is a recognized step for IT professionals building their careers, and it sits alongside related credentials such as PRM Exam II: Mathematical Foundations of Risk Measurement, PRM Designation (full credential requiring Exam I + Exam II).

The PRMIA Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition exam includes 60 questions and gives you 240 minutes to complete them. That works out to a fairly tight pace, so reading each question carefully but decisively matters more than perfectionism. If a question stalls you, flag it and move on; banking the easier points first keeps time pressure from snowballing near the end. Before test day, run at least one full timed session with the Actualtests4sure practice test so the rhythm feels familiar rather than rushed.

You need Not publicly specified (PRM exams use scaled scoring with minimum passing threshold determined by PRMIA) to pass the 8006 exam, and the official registration fee is Varies by country / PRMIA pricing via Pearson VUE. Keep in mind that a failed attempt means paying the full fee again to retake the exam, so it pays to be honest with yourself before booking a seat. A practical benchmark: work through the 290 practice questions at Actualtests4sure until you can score comfortably above the passing line in timed mode, then schedule your exam.

Enrollment in PRMIA professional program and payment of exam registration/authorization; no formal prerequisites beyond PRMIA application Because PRMIA may adjust its policies over time, we recommend confirming the latest requirements on the official exam page (official exam page) before you register.

Yes. Actualtests4sure offers a free PDF demo of the PRMIA Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition material, so you can review the question style and answer quality before making a decision. Every purchase also includes 365 days of free updates, and after that period you can extend your updates at a 50% discount, which keeps your preparation current through 2026 and beyond.

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The PRMIA Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition syllabus is divided into 3 main domains, including Financial Instruments, Financial Markets, Finance Theory. Each domain carries a different share of the total score, so knowing where the weight sits helps you allocate your study time wisely. You will find the complete, up-to-date outline in the Exam Topics section above.

PRMIA Exam I: Finance Theory Financial Instruments Financial Markets - 2015 Edition Sample Questions:

Question 1

A risk analyst working for an asset manager with a large debt portfolio is tasked with determining the suitability of using a traded debt ETF as a hedge against the value of the debt portfolio. He/she calculates the minimum variance hedge ratio to be exactly 1.0.
Given the above facts, which of the following statements are certainly true:
I. The ETF represents a perfect hedge for the portfolio
II. The volatility of the portfolio is the same as that for the ETF
III. The ETF cannot be used as an effective hedge for the debt portfolio IV. None of the above

A. I only
B. I and II
C. IV only
D. III only


Question 2

If x represents wealth, and u(x) its utility, then a logarithmic utility function can be represented by:

A. u(x) = 1/ln(x)
B. u(x) = ln(x)
C. u(x) = exp(x)
D. u(x) = ln(-x)


Question 3

The value of which of the following options cannot be less than its intrinsic value

A. a Bermudan put
B. a European put
C. an American put
D. a European call


Question 4

A US treasury bill with 90 days to maturity and a face value of $100 is priced at $98. What is the annual bond-equivalent yield on this treasury bill?

A. 8.00%
B. 8.28%
C. 8.11%
D. 8.16%


Question 5

A fund manager holds the following bond positions in a client portfolio:
a. A long position worth $100m in a bond with a modified duration of 7.5 b. A short position worth $65m in a bond with a modified duration of 12 c. A long position worth $120m in a bond with a modified duration of 6 What is the impact of a 10 basis point increase in interest rates across the yield curve?

A. A loss of $24,225
B. A loss of $690,000
C. A gain of $24,225
D. A gain of $69,000


Solutions:

Question 1
Answer: C
Question 2
Answer: B
Question 3
Answer: C
Question 4
Answer: B
Question 5
Answer: B

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