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CT8 to CM2

Discussion in 'CM2' started by Johnson Adeleke, May 21, 2019.

  1. Johnson Adeleke

    Johnson Adeleke Member

    Hey guys, how much of CT8 is CM2? If I practice the papers of CT8 is that sufficient? I've noticed there are differences in the curriculum? Does anyone know any practice strategy given that they aren't a lot of relevant and full papers? Is it possible to get more of the Series X assignments?
     
    Johnson Adeleke, May 21, 2019
    #1
  2. Anna Bishop

    Anna Bishop ActEd Tutor Staff Member

    A good question :)

    At a high level, CM2 is:
    - nearly all of CT8
    - two chapters from CT6 - ruin theory and run off triangles
    - one chapter from CT1 - stochastic interest rate models.

    A few things from CT8 have disappeared, eg:
    - Arbitrage Pricing Theory (APT)
    - longitudinal and cross-sectional properties
    - deflators and market price of risk (only from the chapter on interest rates).

    Some things have changed, eg:
    - behavioural Finance now covers some different ideas to those previously covered
    - a new section on how insurers manage risk, moral hazard and adverse selection in the chapter on measures of investment risk
    - rewritten Core Reading on stochastic calculus, interest rate models and credit risk models.

    Hope this helps!
    Anna
     
    Anna Bishop, May 22, 2019
    #2
    Kriti Gupta and r_v.s like this.
  3. laura_mils

    laura_mils Active Member

    Hi

    In the ASET, for 2014 Q5 there is a question on market price of risk and to define it, is this sort of thing no longer examinable as i cannot find it chapter 18?
    I also came across a ct8 past paper where you had to derive the market price of risk (and to be honest I couldn't do it ). would this now not be examinable?

    Thanks
    Laura
     
    laura_mils, Aug 31, 2020
    #3
  4. N_Exam

    N_Exam Very Active Member

    Hi,

    I have come across "deflators" via Market Price Deflators in the Binomial Mode and "market price of risk" in stock pricing and CAPM. I'm assuming as these are not in the "chapter on interest rates", they can still come up in this Septembers CM2 exam?
     
    N_Exam, Sep 1, 2020
    #4
  5. laura_mils

    laura_mils Active Member

    Yes, I agree the market price deflators and market price of risk are in those chapters still.
    However the definition etc. which is in the exam solution doesn't seem related to those chapters at all and more of a chapter 18 type question, so I think they're a bit different?
     
    laura_mils, Sep 1, 2020
    #5
  6. Helloall

    Helloall Very Active Member

    I agree Laura it would be good to get some confirmation regarding whether something like Question 5 b in 2005 April paper is expected or whether that has now been removed from the material. I suspect that it is not but not entirely sure.
     
    Helloall, Sep 2, 2020
    #6
    laura_mils likes this.
  7. laura_mils

    laura_mils Active Member

    yeah I think thats the one I couldn't do!
     
    laura_mils, Sep 3, 2020
    #7

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