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Exam II: Mathematical Foundations of Risk Measurement - 2015 Edition

Last Update Oct 31, 2025
Total Questions : 132

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

Questions 1

Which of the following statements is not correct?

Options:

A.

Every linear function is also a quadratic function.

B.

A function is defined by its domain together with its action.

C.

For finite and small domains, the action of a function may be specified by a list.

D.

A function is a rule that assigns to every value x at least one value of y.

Questions 2

Which of the following statements are true about Maximum Likelihood Estimation?

(i) MLE can be applied even if the error terms are not i.i.d. normal.

(ii) MLE involves integrating a likelihood function or a log-likelihood function.

(iii) MLE yields parameter estimates that are consistent.

Options:

A.

(i) and (ii)

B.

(i) only

C.

(i) and (iii)

D.

(i), (ii), and (iii)

Questions 3

What is the indefinite integral of the function f(x) = ln(x), where ln(x) denotes the natural logarithmic function?

Options:

A.

x ln(x) - x

B.

ln(x) - x

C.

1/x

D.

exp(x)

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