April 2010

Well it appears we can talk about the exams now but im not going to mention anything specific yet just in case .

So how did ye all get on , i think its was a far nicer paper than the 1 I sat in September . I got on pretty well being able to get at least some marks from every question and a couple of questions i got completely out , so I fancy a pass this time round .

your thoughts?

 

Stochastic integrals

There was too many stochastic integrals as comparing to other CT8s. Few complicated!
I didn't know how to calculate semi-var in the last question - did some calculations of m1 and m2 not sure the method is correct- but I found a random var (uniform) within another random var (discrete with p1=25% and p2=75%) ??
I scored marks on each question, but if the passing score is > 60-65 marks probably I will fail.

Other opinions on this CT8?
10x.

 

CT8 Paper

 

I have no idea how to do the last question, what did everyone do? Seems silly cause it feels like it should have been easy.

 

I found the first four questions, and also the theory questions (2-state, EMH) easy. In the other questions I have mixed results. Stuffed up with parts of the 'martingale question'. The last question I also had a problem.

What do you guess will be the pass requirement? 60% or maybe less?

With 60% I may have a chance, but with more I also have trouble.

 

beyers - I had a similar opinion to you. I liked most of the questions but didn't get as far as I wanted with the CMG and Bond Price questions and the last question. But if you found 6 out of the 9 questions "easy", don't you think you will get more than 60%?!

When starting to read the last question I thought that it was just an adaption of the Merton Model. Then reading about variances I wasn't so sure...

Yes, describing the 2 state model question wasn't difficult, but I couldn't think of 9 marks (?) worth of answers!

 

I found those 6 easy, but I have no idea how strictly they mark - and possibly I made some mistakes while thinking it is easy - they may kill us on technical points. But you are right, hopefully the 60 is conservative...

 

I agree 100% - I ran out of time on question 4 though. So does anyone know how they did the last question. This is really nagging me

 

I can't really help you Zapher as I didn't really get it. I started by trying to find the expected value of the two different loans and then hoped I could move from this expected value formula to the variance - with the help of the variance formula for a uniform distribution from the tables. At best I will only score half marks on this question.

 

Interesting that the paper contained no questions about Utility Theory/Dominance, MPT, Multifactor or CAPM.

 

Paper is on the Profession's website: http://www.actuaries.org.uk/__data/assets/pdf_file/0011/168491/FandI_CT8_201004_Exam_FINAL.pdf

I think question 4 is pretty tricky.

 

Ct8

Hi,
After I see again the paper I realised that it was a nice paper, unfortunately I scored only 55 marks, possibly max. 60. So I'm at the limit, God knows if I will pass! Dissapointed because i missed Q5 i) and ii) at the exam and now i see the solution very easy.

 

I surely wish you pass ...

 

Thanks

Good remark that Chapters 1,2,3,4,5,6,10 almost missing from the paper (only EMH Q9 and SemiVar Q10). It's strange that MPT, CAPM and the Greeks were not included!!Thanks beyers and let's hope that we will pass together!

 

Also nothing about Wilkie model.

 

I don't think this was a nice paper at all. I think I've done better than my two previous attempts, but not enough to pass. Might have been by own fault for not really wanting to engage in the very techy bookwork, but Q4 and Q7 were a little bit beyond what they've asked in the past and I think it was a little harsh to put both of them on the paper. On top of this, I think few of us will score very highly on the deliberately vague Q6 and Q8 and the rider to Q5 was tough.

Q9 will punish people who can't apply the basic principles of CT8 to an odd (but perfectly gettable) example, which is really what the exam should all be about. It's a shame that the paper seemed to reward rote learning of the most technical bookwork.

As for what the 'pass mark' may be - not that there is an actual pass mark, of course - the perceived wisdom is that 50% is about right for an 'average' CT8 paper. Based on comments on this forum, it could be higher than that but I suspect not everyone found it as easy as you guys did.

 

Hamburglar

Hi,
When I said that was a nice paper it doesn't mean that was easy (big difference between hard and easy...sometimes hard is nice , I said nice because I see the Questions very technical, tricky, and different than past CT8s). I felt the exam very hard indeed (since I scored only oround 55 marks). Let's hope that you are right with 50% passing and we will be amongst them !!

 

Really? Hard is never nice when we're talking about CT8 .

 

Thank goodness I passed CT5 and CT8

 

In the wise words of alan partridge- back of the net.

For all those struggling, buy the baxter and rennie book and read chapters 1 to 5. This will solve all your problems. The cmp simply isn't good enough.

 

Hooray - I passed!

Third time lucky - turns out you don't need to engage in the really techy bookwork to pass.

For those of you who weren't in the 29%(!), don't lose heart. I can recommend the taught course with David Hopkins - it certainly helped me believe I could understand the material.

12 down, 3 to go!