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PRMIA 8010 Exam - Topic 1 Question 27 Discussion

Actual exam question for PRMIA's 8010 exam
Question #: 27
Topic #: 1
[All 8010 Questions]

A stock that follows the Weiner process has its future price determined by:

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Suggested Answer: D

The change in the price of a security that follows a Weiner process is determined by its standard deviation and expected return. To get the price itself, we need to add this change in price to the current price. Therefore the future price in a Weiner process is determined by all three of current price, expected return and standard deviation.


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Jeniffer
4 months ago
Not sure about that, past movements matter too, right?
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Lino
4 months ago
Totally agree with D, can't ignore current price!
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Muriel
4 months ago
Wait, is it really just those? Sounds too simple.
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An
4 months ago
I think B is right, expected return and standard deviation are key.
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Beckie
4 months ago
It's definitely D, you need all three factors!
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Paulene
5 months ago
I thought it was just about expected return and standard deviation, so B makes sense, but I could be mixing it up with another concept.
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Avery
5 months ago
I feel like the answer might be D because it mentions current price too, but I can't recall if that's necessary for the Wiener process.
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Lizbeth
5 months ago
I remember practicing a question similar to this, and I think it was about how both return and standard deviation are important. So, B seems likely.
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Wade
5 months ago
I think the Wiener process involves both expected return and volatility, so maybe it's B? But I'm not entirely sure.
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Tamekia
5 months ago
Okay, let me re-read the question. The blank needs to be filled with a phrase that describes a simple document providing a high-level view of the organization's disaster recovery plan. I'm leaning towards A, but I'll double-check my work.
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Lashandra
5 months ago
Hmm, this seems like a straightforward finance question. I'll need to think through the different return metrics and which one best estimates project value.
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Nan
5 months ago
I'm a little confused by this question. I know we covered governance and management practices, but I'm having trouble remembering the specific types of documentation that could be used. I'll have to guess on this one and hope for the best.
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