We recently released our new PRM Exam 1 Practice Question Bank for students preparing for PRM Exam 1. Some of you asked us that you wanted to see a sample of questions provided in the practice question bank. So, here it is.
We picked up a few questions from the question bank that broadly represent the different kinds of questions including numerical, conceptual and logical questions. The following sample contains 6 questions. However, our PRM Exam 1 Practice Question Bank contains 5 full-length practice tests with a total of 180 questions.
[show_to accesslevel=’Free Member’]
0 of 6 questions completed
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
0 of 6 questions answered correctly
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
Question 1 of 6
An investor currently has a portfolio of stocks. He is analyzing two stocks, Stock Y and Z, for adding to his portfolio. Both Stock Y and Z have the same risk/return profile. However, the covariance for Stock Y and Z with the portfolio are 0.2 and 0.4.
Which of the following statements is TRUE?CorrectIncorrect
Question 2 of 6
An investor buys a given amount of the US Treasury bond with coupon 4% and maturity January 1, 2018. The current clean price of the bond is 96.25625. The bond paid the coupon semi-annually on every January 1 and July 1. The settlement date was April 4, 2013.
Calculate the dirty price of the bond.CorrectIncorrect
Question 3 of 6
You are speaking with a bond portfolio manager who states that “my strategy is to match the duration of fixed income investments with the term structure of my clients’ liabilities”. This strategy best reflects which of the following expectations theories of the term structure of interest rates?CorrectIncorrect
Question 4 of 6
Rank the following three bonds from shortest to longest duration.
I. 6% 5-year semi-annual pay bond
II. 6% 5-year annual pay bond
III. 5-year zero-coupon bondCorrectIncorrect
Question 5 of 6
Which of the following statements about Straddles and Strangles is FALSE?CorrectIncorrect
Question 6 of 6
Assuming a positive relationship between futures prices and interest rates, which of the following is most accurate?CorrectIncorrect