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Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition

Last Update Dec 26, 2024
Total Questions : 132

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Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition Questions and Answers

Questions 1

The first derivative of a function f(x) is zero at some point, the second derivative is also zero at this point. This means that:

Options:

A.

f has necessarily a minimum at this point

B.

f has necessarily a maximum at this point

C.

f has necessarily neither a minimum nor a maximum at this point

D.

f might have either a minimum or a maximum or neither of them at this point

Questions 2

Which of the following is a false statement concerning the probability density function and the cumulative distribution function of a random variable?

Options:

A.

the PDF is non-negative.

B.

the definite integral of the CDF from minus infinity to plus infinity is undefined.

C.

the CDF approaches 1 as its argument approaches infinity.

D.

the definite integral of the PDF from minus infinity to plus infinity is zero.

Questions 3

Identify the type and common element (that is, common ratio or common difference) of the following sequence: 6, 12, 24

Options:

A.

arithmetic sequence, common difference 2

B.

arithmetic sequence, common ratio 2

C.

geometric sequence, common ratio 2

D.

geometric sequence, common ratio 3