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Updated: Jul 25, 2026

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PRMIA 8007 Exam Overview:

Certification Vendor:PRMIA (Professional Risk Managers' International Association)
Exam Name:Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition
Exam Number:8007
Passing Score:60%
Exam Format:Multiple-choice questions, Computer-based, No negative marking
Available Languages:English
Certificate Validity Period:3 years from passing; must complete all PRM exams within 2 years
Related Certifications:PRMâ„¢ Certification
ORM (Operational Risk Manager)
Exam Duration:120 minutes
Real Exam Qty:132
Exam Price:$650 - $800 USD (varies by PRMIA membership type)
Recommended Training:PRMIA Recommended Preparation Resources
PRMIA Official Handbook & Study Materials
Exam Registration:PRMIA Official Registration
Pearson VUE Scheduling
Sample Questions:PRMIA 8007 Sample Questions
Exam Way:Online proctored or onsite at Pearson VUE testing centers
Pre Condition:PRMIA membership; bachelor's degree + 2 years experience OR 4 years experience without degree; graduate degree or relevant professional designation may waive experience requirement
Official Syllabus URL:https://prmia.org/Public/PRM/PRM_Handbook_Digital%20Resources.aspx

PRMIA 8007 Exam Syllabus Topics:

SectionWeightObjectives
Probability Theory25%- Random variables and distributions
  • 1. Discrete and continuous distributions
    • 2. Expected value, variance, covariance
      - Basic probability concepts
      • 1. Conditional probability and independence
        • 2. Axioms and rules
          Statistics and Regression Analysis20%- Descriptive statistics
          • 1. Correlation and covariance
            • 2. Measures of location and dispersion
              - Linear regression
              • 1. Simple and multiple regression
                • 2. Hypothesis testing and confidence intervals
                  Calculus and Functions20%- Single-variable calculus
                  • 1. Derivatives and applications
                    • 2. Integrals and applications
                      • 3. Limits and continuity
                        - Multivariable calculus
                        • 1. Partial derivatives
                          • 2. Optimization
                            Numerical Methods & Financial Mathematics15%- Time value of money
                            - Root finding and approximation
                            - Basics of risk modeling
                            Linear Algebra and Matrix Theory20%- Matrix operations
                            • 1. Addition, multiplication, inversion
                              • 2. Determinants and trace
                                - Vectors and eigenvalues
                                • 1. Eigenvalues and eigenvectors
                                  • 2. Diagonalization

                                    PRMIA Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition Sample Questions:

                                    1. 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

                                    A) All three statements are correct
                                    B) Statements 1 and 2 are correct
                                    C) Statements 1 and 3 are correct
                                    D) Statements 2 and 3 are correct


                                    2. For the function f(x) =3x-x3 which of the following is true?

                                    A) x = 0 is a minimum
                                    B) None of these
                                    C) x = 2 is a maximum
                                    D) x = -3 is a maximum


                                    3. In statistical hypothesis tests, 'Type I error' refers to the situation in which...

                                    A) The null hypothesis is rejected when in fact it should have been accepted
                                    B) Both null hypothesis and alternative hypothesis are rejected
                                    C) Both null hypothesis and alternative hypothesis are accepted
                                    D) The null hypothesis is accepted when in fact it should have been rejected


                                    4. For each of the following functions, indicate whether its graph is concave or convex:
                                    Y = 7x2 + 3x + 9
                                    Y = 6 ln(3x)
                                    Y = exp(-4x)

                                    A) concave, concave, concave
                                    B) concave, convex, convex
                                    C) convex, concave, concave
                                    D) convex, convex, concave


                                    5. Which of the following statements is true?

                                    A) The constant plays an important role in the mathematical description of continuous compounding.
                                    B) Continuous compounding can be thought as making the compounding period infinitesimally small.
                                    C) Discrete and continuous compounding produce the same results if the discount rate is positive.
                                    D) Continuous compounding is the better method because it results in higher present values compared to discrete compounding.


                                    Solutions:

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

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