Free PRMIA 8010 Exam Questions

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Total 242 Questions | Updated On: Dec 18, 2025

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Question 1

The VaR of a portfolio at the 99% confidence level is $250,000 when mean return is assumed to be zero. If the assumption of zero returns is changed to an assumption of returns of $10,000, what is the revised VaR?

A : 260000

B : 240000

C : 273260

D : 226740

Answer: B

Question 2

A financial institution is considering shedding a business unit to reduce its economic capital requirements. Which of the following is an appropriate measure of theresulting reduction in capital requirements?

A : cremental capital for the business unit in consideration

B : oportionate capital for the business unit in consideration

C : rcentage of total gross income contributed by the business unit in question

D : rginal capital for the business unit in consideration

Answer: A

Question 3

Which of the following is true in relation to the application of Extreme Value Theory when applied to

operational risk measurement?

I. EVT focuses on extreme losses that are generally not covered by standard distribution assumptions

II. EVT considers the distribution of losses in the tails

III. The Peaks-over-thresholds (POT) and the generalized Pareto distributions are used to model extreme value

distributions

IV. EVT is concerned with average losses beyond a given level of confidence

A : and IV

B : and III

C : II and III

D : II and IV

Answer: C

Question 4

A bullet bond and an amortizing loan are issued at the same time with the same maturity and with the same principal. Which of these would have a greater credit exposure halfway through their life?

A : determinate with the given information

B : ey would have identical exposure half way through their lives

C : amortizing loan

D : bullet bond

Answer: D

Question 5

The risk that a counterparty fails to deliver its obligation upon settlement while having received the leg owed

to it is called:

A : e-settlement risk

B : edit risk

C : placement risk

D : ttlement risk

Answer: D

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Total 242 Questions | Updated On: Dec 18, 2025

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