looking at practice question 21.3 part (iii) we are asked to describe the problems caused by a share increase in interest rates.

We are told the earned asset share may fall as the market value of assets will fall?

we are also told in the answer “ current premium rates me be lower”

question:

1) why does a rise in the interest rate cause a fall in the market value of assets. And hence why would this fall in the market value of assets cause the asset share to fall. We use AS(t+1) = AS(t)...

Chapter 21 - Surrender Values Practice question]]>

Please guide me if I'm wrong.]]>

Image Link:-https://ibb.co/gM9JKkX]]>

What do drift coefficients and diffusion mean in terms of Brownian Motion?

In the proof of non-differentiability of Sample paths, can anyone explain the case for t>s?

How (W_t-W_s)/(t-s)-dW_t/dt~N(-dW_t/dt,1/t-s) and the explanation afterwards?

Image Link:-https://ibb.co/fD9Z8KH]]>

Just wanted to ask how did everyone feel about the examination?]]>

On the first line of pg 6 it explains that "Z first-order stochastically dominates X if Z can be obtained from X by shifting probability from lower to higher outcome levels." The Acted question and answer on that page then aim to provide an illustration of this alternative explanation. But i have 3 basic questions on this alternative explanation:

Q1: I'm missing something obvious but don't...

Chapter 3 - Stochastic dominance -alternative explanation]]>

The first question on pg 5 (Chap 2 course notes) asks to calculate the expected next-period utility when there's only a proportion, 'a' of wealth, w, invested in Equity A.

Realise its a basic point but dont understand how to calculate the answer. Why is it 0.25*(log(

0.25*(log(

Sim. unclear how to calculate the given answer for Q(iii) at the bottom of that page/top of next]]>

What is the meaning of estate ? How is it different from Free Surplus ?]]>

Is there anyone who has made a similar switch from an accounting background and would have any...

Career change - Accountant to Actuary]]>

Hope you are well

For X assignment 6 Question 4:

The solvency ratio here is given as :

This is defined as shareholders’ funds divided by premiums written in the previous year

but why use premium written from previous year? is that because the shareholders’ funds used is as at start of the year?

The notes said ' free reserves /net written premiums. I know free reserves is the shareholders’ funds, but it does not say we should use previous year net written premium?...

X6.4 -Solvency Ratio]]>

See https://improveifoa.wordpress.com/2...teapot-with-regard-to-home-and-car-insurance/]]>

Am looking at the performance fee calculation for fund B on part (ii) of Q7 on the September 2017 paper. The performance fee for t=1 is showing as 0.384 in the solutions. However, am getting 20% *(108-100) = 1.60.

Does anyone know 0.384 is found?

Thanks,

M]]>

I hope you are well

For this question, what does the 'return period' column tells us? or how do we use this to compare actual and modelled/expected result?

Trade Credit:

The return periods are all less than ten years which is fairly near term and therefore does not seem unreasonable given the actual experience.

Kidnap and ransom:

The return periods for the loss ratios are not unreasonable given how close the actual and expected...

2020 April Q4]]>

This question also applies to the exams in general, was wondering if we are allowed to copy and paste our excel workings into our Word exam script? For example, question 5 from April 2021 ST5 paper. The tax calcs can easier be done in excel. Is this allowed?

Thanks]]>

I was hoping someone could assist with my understanding for the Sep 19 Q4 and Apr 09 Q3iv.

September 2019 Q4

The main query for this question is around figuring out if the investor should buy or sell the future which I'm struggling to get my head around. I am happy with the derivation of the Future rate of 1.1614 dollars per euro.

Any help on why they would buy or sell the future at this stage would be appreciated!

April 09 Q3iv

It is a smaller query for this...

Sep 19 Q4 and Apr 09 Q3]]>

This might be a very basic question - but I am not able to relate alpha and Kendal's tau - how do we calculate one from the other?

(this is in context of Q1 part 10 of September 2021 exam paper)

Can someone please help ?

Thank you so much!]]>