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 09, 2025

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Question 1

Two portfolios with identical Sharpe ratios will have

A : identical expected risk

B : identical expected risk and returns

C : returns identically proportionate to risk

D : identical expected returns

Answer: C

Question 2

Which of the following will have the effect of increasing the duration of a bond, all else remaining equal:I. Increase in bond couponII. Increase in bond yieldIII. Decrease in coupon frequency IV. Increase in bond maturity

A : III and IV

B : I and III

C : I and II

D : II, III and IV

Answer: A

Question 3

An early exercise of an American call option is advisable whenever the option is deep in the money and delta approaches 1

A : An early exercise of an American call option is advisable whenever the option is deep in the money and delta approaches 1

B : An early exercise of an American call option may be justified if an extraordinarily large dividend payment is imminent

C : An early exercise of an American call option is never a good idea as an option is always worth more alive than when it is dead

D : An early exercise of an American option, if ever to be done, should be done immediately after an exdividend date

Answer: B

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 bondequivalent yield on this treasury bill?

A : 8.16%

B : 8.11%

C : 8.28%

D : 8.00%

Answer: C

Question 5

Callable corporate bonds:

A : generally yield less than non-callable bonds due to the call feature

B : need to be priced lower than non-callable bonds to make them attractive to investors

C : are more convex than their non-callable counterparts

D : are generally called when their prices have fallen below the issuance price

Answer: B

Page: 1 / 58

Total 290 Questions | Updated On: Apr 09, 2025

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