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PRMIA Exam 8007 Topic 1 Question 2 Discussion

Actual exam question for PRMIA's Mathematical Foundations of Risk Measurement – 2015 Edition exam
Question #: 2
Topic #: 1
[All Mathematical Foundations of Risk Measurement – 2015 Edition Questions]

You work for a brokerage firm that charges its client x per share. The volume of trade of a client of type A depends on the per share commission in the following manner. If the commission is x, the client of type A will trade e-ax shares on average each week. What is the optimal commission x that maximizes the income from client A, noting that a is greater than zero?

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Suggested Answer: C

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