# How to Study for PRMIA Mathematics Section

The exam II of the PRM Certification conducted by PRMIA is about mathematical foundations of risk management. As the risk management profession becomes more important and dependent on quantitative models, it is essential for a risk manager to possess adequate quantitative skills and knowledge of mathematics concepts as applicable to risk management.

In the overall certification the PRMIA mathematics has In my opinion this is the most difficult among the four PRM exams. Let’s take a brief look at what to expect and what is the best way to study this section.

- It’s a two hour exam with 24 multiple choice questions. - In the overall certification Exam II has 20% weight. - An [online scientific calculator, Texas Instrument TI308XS](https://financetrain.com/calculator-for-prm-exam/ "Calculator for PRM Exam"), is part of the test delivery system. - The [PRM Exam II curriculum](https://financetrain.com/all-about-prm-exam-ii/) is well balanced with wide coverage of important math concepts. - Although all sections are important, you should pay special attention to the most important sections are Calculus, Linear Mathematics and Algebra, and Probability Theory in Finance. - 16 out of 24 questions are from the above listed topics. - For each section, knowing the mathematical concepts is not enough. You will mostly be tested on the application of these math concepts in finance and risk. Some examples are provided below: - While studying descriptive statistics, you should learn how to calculate the volatility, correlation, etc. for a price series. - In calculus section, you should learn how to apply the concepts to calculate duration, convexity, option greeks, and solve optimization problems. - In linear mathematics and algebra, you should learn how to construct a portfolio, hedge a position, calculate variance, among other things. - In probability, you should be able to apply the concepts for things such as derivatives pricing. - PRM II exam requires you to have strong math skills. You are not good with maths and/or do not have a mathematics background, then you will find this exam specially difficult. But with the right amount of practice and dedication, you will be able to master this section.

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