CAPM Certification Practice Test 2025
Certified Associate in Project Management

The Certified Associate in Project Management (CAPM)® credential is intended to prepare applicants for entry-level project management employment. The Project Management Institute (PMI), a renowned global project management organization, administers it.

 CAPM stand for Certified Associate in Project Management.

Yes, one of the benefits of CAPM certification is that it enhances the value of your resume and talents. The PMI Certified Associate in Project Management (CAPM) credential is one of the highest-paid credentials in the industry, as previously indicated.

The CAPM formula states that a security’s return is equal to the risk-free return plus a risk premium based on the security’s beta. In the CAPM, an asset’s return is equal to the risk-free rate plus the premium, multiplied by the asset’s beta.

The Project Management Institute (PMI) offers two specialized credentials: Certified Associate in Project Management (CAPM) and Project Management Professional (PMP). Both improve credibility and provide professionals with opportunities to expand their skills, lead larger projects, and advance their careers.

The cost of capital is an important factor in capital budgeting. The CAPM is most commonly used by financial managers to estimate the cost of capital for which they need to know the market risk premium. The market risk premium should be calculated using the historical value of the US equities premium.

PMI membership is $129 per year, plus a $10 application fee. The cost of joining a local PMI chapter varies depending on the chapter. The chapter fees can be found on the PMI website, www.pmi.org.

• PMI members pay $225.
• Non-members will have to pay $300.

It’s a popular misconception that if you get a score of more than 61 percent on the CAPM exam, you’ll pass. However, no one can verify that this is accurate. As a result, I recommend aiming for a score of at least 70% on your CAPM certification exam.

The CAPM Certified Associate in Project Management exam assesses your understanding of the PMI framework, including its nine knowledge areas and five process groups. Initiating, planning, executing, monitoring, controlling, and closing are the process groups.

The CAPM is more entry-level, whereas the PMP is more professional. As a result, the qualifications for the CAPM exam are less stringent, and the exam is easier and less expensive than the PMP. The PMP certification, on the other hand, is more well-known, renowned, and more likely to get you a higher income.

If you pass the exam, you will receive a message from the PMI congratulating you and stating that you will receive your certificate within four to six weeks at the address you gave on the application form.

The CAPM exam is three hours long.

It compares an unlevered company’s risk to the market’s risk. It’s computed by multiplying equity beta by 1 and adding tax adjusted debt to equity. One tenth of a percent is equal to one basis point (bps).

Take a CAPM exam preparation course. Use CAPM flashcards (you can make these yourself) and take a lot of CAMP practice test! Read another project management CAPM study book (only one because too many can be confusing)

According to the CAPM, the value of a company’s discounted cash flows is merely a function of the covariance of the firm’s cash flows with the market portfolio, the expected cash flow of the business, the market portfolio’s mean rate of return, and the risk-free rate of interest.

The difference between WACC and CAPM is that WACC is used to compute the blended average of all a company’s capital sources, whereas CAPM is used to calculate the cost of a company’s equity (ownership).

Yes, the CAPM model is commonly used in finance to price hazardous securities and calculating predicted returns for assets based on their risk as well as the capital cost.

The Certified Associate in Project Management (CAPM) from PMI is an entry-level project management certification for persons with little or no experience.

The sum of the average capital gain and the average dividend yield can be used to calculate the stock market return. A stock market might produce a negative rather than a positive return if the share prices fall and outweigh the dividend yield (Capital Asset Pricing Model).

The risk-free rate is 5.00 percent, while the market return is predicted to be 12.00 percent. The CAPM formula can be used to calculate each stock’s expected return. Rrf + [Ba * (Rm – Rrf)] = Required Return (Ra)

Yes, one of the advantages of CAPM certification is that it provides a significant amount of value. value—increase the value of your CV as well as your abilities. We’ll talk about it in this article, the following subjects can assist you in comprehending the advantages of CAPM certification.

The CAPM exam is widely regarded as being significantly easier than the PMP exam.

You must have 1500 hours of project management experience or 23 hours of formal project management study to apply for the CAPM exam. The exam will take three hours to complete.

CAPM formula = Risk-Free Rate of Return + Beta * (Market Rate of Return – Risk-free Rate of Return) here, Market Risk Premium Formula = Market Rate of Return – Risk-Free Rate of Return.

CAPM Certification Training in India CAPM (Certified Associate in Project Management) is a worldwide recognized certification program for project managers of the future.

Yes, the CAPM exam is changing! But don’t worry. This is a minor change.

Your CAPM certification is valid for five years from the day you passed the exam.

The amount by which the portfolio’s realized return differs from the necessary return, as established by CAPM, is dictated by alpha. The following is the formula for alpha: = Rp – [Rf + (Rm – Rf) β]

The CAPM is easier than the PMP.

The CAPM exam is not an open-book exam. Test participants are given a blank sheet of paper and a pen to write down equations, processes.

The CAPM Formula was created to quantify this systematic risk. Sharpe discovered that the return on a single stock or a portfolio of stocks should be equal to the cost of capital. The CAPM, which describes the relationship between risk and expected return, remains the standard formula.

The market risk premium is a component of the Capital Asset Pricing Model (CAPM), which is used by analysts and investors to determine an investment’s acceptable rate of return. The concepts of risk (volatility of returns) and reward are at the heart of the CAPM (rate of returns).

During practice tests, it is generally recommended that you aim for a score of 70% or higher.

The CAPM exam is a computer-based exam that is administered at a Pearson VUE location.

Yes, the CAPM exam can be taken online. Attending a test center or taking a CAPM online test via a proctored exam are the two options for taking the CAPM exam.

Yes. The CAPM accreditation, on the other hand, is only valid for five years. You must retake and pass the exam during your fifth year.

CAPM is also based on an assumption that is no longer valid in today’s markets. Over the holding term, it is assumed that risk-free rates will remain constant.

150 multiple choice questions must be answered.

With an average annual salary of $101,103, the PMI Certified Associate in Project Management (CAPM) is one of the highest-paying certifications. Candidates’ salaries vary depending on their job title and level of experience.

You must retake the CAPM exam every five years to keep your certification.

Here’s how to schedule your CAPM exam if you match the CAPM Eligibility Criteria:

• Step 1: You must first pay the CAPM fees. CAPM fees can be paid with a major credit card on the PMI website or by mailing a check or money order to the PMI Global Operations Center.
• Step 2: After the payment has cleared, you may be chosen at random for an application audit (note that only a small percentage of CAPM applications get audited). This procedure can take several weeks to complete. Your payment will be reimbursed if your application fails the PMI audit, and you will not be allowed to take the test.
• Step 3: If all of the above processes are performed successfully, PMI will approve your application and provide you exam scheduling information via email, directing you to the Prometric website to select your exam day and venue.

It’s important to remember that you have a year from the date your application was approved to take the CAPM exam. You must re-submit your application and payment if you fail to take the exam during that year (also known as the “Eligibility Period”).

There are 150 multiple choice questions on the CAPM Exam. Out of the 15 of the 150 questions are thought to be pretest questions.

Achieving your CAPM certification is an excellent career step in the project management sector since it sets you apart from other job candidates. The Project Management Institute has accredited the Certified Associate in Project Management (CAPM) qualification (PMI).

In the job market, having a CAPM certification on your resume gives you a distinct advantage over uncertified candidates. Furthermore, the PMP exam is a difficult one that puts a candidate to the test with numerous difficult questions, which the CAPM exam lacks.

A career in engineering is one of the most profitable options for CAPM certified professionals. These are highly sought-after positions that normally necessitate additional education. CAPM-certified professionals, on the other hand, are frequently considered for engineering positions at some businesses.

The Capital Asset Pricing Model (CAPM) is a model that describes the link between a security’s expected return and risk. It demonstrates that a security’s expected return is equal to the risk-free return plus a risk premium depending on the beta.

In capital planning, a hurdle rate is the minimal rate that a corporation expects to receive while investing in a project. This rate is also known as the needed rate of return for the company. In order for a project to be accepted, the hurdle rate must be equal to or greater than the internal rate of return.

A market portfolio is an important part of the capital asset pricing model (CAPM). The CAPM, which is widely used for pricing assets, particularly equities, calculates an asset’s projected return based on its level of systematic risk. The security market line is an equation that expresses the link between these two items.

CAPM certified professionals can apply for a variety of career roles, including: Marketing Coordinator for Communications Business Analyst, Consultants, Operational Support associate, Senior Project Manager in IT, Relational Administrator, PMO.