Free PRMIA 8013 Exam Questions

Become PRMIA Certified with updated 8013 exam questions and correct answers

Page: 1 / 58

Total 290 Questions | Updated On: Jul 29, 2025

Add To Cart

Question 1

The two components of risk in a commodities futures portfolio are:

A : Changes in the convenience yield and storage costs

B : Changes in spot prices and carrying costs, also called commodity lease rates

C : Changes in interest rates and spot prices

D : The risk from change in basis and interest rates

Answer: B

Question 2

If zero rates with continuous compounding for 4 and 5 years are 4% and 5% respectively, what is the forward rate for year 5?

A : 5%

B : 9%

C : 9.097%

D : 7%

Answer: B

Question 3

Determine the price of a 3 year bond paying a 5% coupon. The 1,2 and 3 year spot rates are 5%, 6% and 7% respectively. Assume a face value of $100.

A : $ 94.92

B : $ 106.00

C : $ 100.00

D : $93.92

Answer: A

Question 4

The price of an interest rate cap is determined by:I. The period to which the cap relatesII. Volatility of the underlying interest rateIII. The exercise or the strike rateIV. The risk free rate

A : I, II, III and IV

B : I, II and III

C : II, III and IV

D : I, II and IV

Answer: B

Question 5

Which of the following best describes the efficient frontier?

A : The efficient frontier identifies portfolios with the lowest return per unit of volatility

B : The efficient frontier identifies portfolios with the highest return per unit of volatility

C : The efficient frontier identifies the market portfolio

D : The efficient frontier identifies portfolios with the highest volatility for a given level of return

Answer: B

Page: 1 / 58

Total 290 Questions | Updated On: Jul 29, 2025

Add To Cart