Archive

Archive for October, 2007

Two errors in A.6.P

October 10th, 2007

On A.6.P #18, I took the derivate with respect to v instead of with respect to y.  The correct solution is 11.32.

On A.6.P #20, there is a cash flow before the first liability (coupon payments), so full immunization is satisfied.

The handouts on all websites have been updated to reflect these corrections.

Errata

No arbitrage bounds: F-

October 9th, 2007

A student asked the following:

I am reviewing No-Arbitrage Bounds with Transaction Costs. Could you please explain how the F- formula is derived?

Here is my response: Derivation of F-

Student Questions

SOA Published Exams

October 7th, 2007

The file was too large to attach.  You can download it here.  I’ve also uploaded a Breakdown of Old Exams.  Please note that the old exams didn’t cover the DM material, so the breakdown only counts for 75-80% of the current exam, since 20-25% of your exam will be DM questions.

Updates

1 month to go

October 7th, 2007

You have exactly one more month to study.  Hopefully you have gone through all the material at least once.  Now is the time to focus on working problems.  I recommend working all the recently published exams  first.  I’ve attached edited versions of those exams with the problems no longer on the syllabus stripped out.  If you have trouble working any of these problems, then please let me know.

After you finish those problems, then start working (or reworking) all the section problems again.  Work 10 from section A.1, then 10 from A.2, and so on.  After you have worked 10 from each section, then start over and work 10 more.  This will help you stay fresh on all the material.  You will basically be reviewing the entire course on a continuous basis.  Every couple of days read over the Summary sheets (these is one for each section).  Most of the stuff on the sheets should be understood, therefore there is no need to memorize.

Exam Tips

SOA Sample DM Solutions

October 7th, 2007

I’ve posted video solutions to the 9 sample problems released by the SOA.  Two of these problems were pretty hard IMO (#1 and #9).  The rest of the problems are more on par with what I expected the difficulty of the DM problems to be.  I think you will find a lot of value in watching the solutions to these problems, even if you got them correct.

You can view the solutions on tiavideos1.com or tiavideos2.com.  See “Joint Exam 2/FM Solutions” section D.

Updates

Amortization Method Part 2

October 3rd, 2007

I failed to mention a couple of key concepts in the lesson A.3.5 Amortization Method. I’ve created a new lesson – A.3.5.2 Amortization Method Part 2. Please watch this video when you get a chance.

Updates