PRMIA 8006 Exam Dumps

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Related Exams

Question # 1

What kind of a risk attitude does a utility function with an upward sloping curvature indicate?

A. risk seeking
B. risk neutral
C. risk averse
D. risk mitigation

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Question # 2

What kind of a risk attitude does a utility function with downward sloping curvature indicate?

A. risk mitigation
B. risk averse
C. risk seeking
D. risk neutral

Show Answer

Question # 3

Which of the following is one of the basic axioms on which the principle of maximum expected utility is based:

A. Stochastic dominance
B. Transportation of choice
C. Utility maximization
D. Cognitive bias

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Question # 4

If x represents wealth, and u(x) its utility, then a logarithmic utility function can be represented by:

A. u(x) = ln(x)
B. u(x) = exp(x)
C. u(x) = ln(-x)
D. u(x) = 1/ln(x)

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Question # 5

A utility function expresses:

A. Risk probabilities
B. Risk alternatives
C. Risk assessment
D. Risk attitude

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