This thread contains the Subject CT8 questions asked most frequently by students, with answers written by ActEd's tutors.
This thread was last updated on 23 March 2017.
Question
What level of maths is required for Subject CT8?
Answer
Some of the maths required for this subject is quite advanced. The techniques covered in Subjects CT1, CT3, CT4 and CT6 will be treated as assumed knowledge and the theory will build on these. You will find the course (and the exam!) much easier if you feel comfortable with the mathematical techniques used in these earlier subjects and you can apply them confidently.
If you feel that you need to brush up on your mathematical skills before starting the course, you may find it useful to recap the relevant sections of Subjects CT1, CT3, CT4 and CT6. You may also find it helpful to study the Foundation ActEd Course (FAC) or read an appropriate textbook. The full syllabus for FAC, a sample of the Course Notes and an Initial Assessment to test your mathematical skills can be found on our website at www.ActEd.co.uk.
Question
Which pre-2005 exam questions are relevant to Subject CT8?
Answer
Most of the old Subject 109 questions are relevant and worth attempting. It should be reasonably clear when a question is no longer on the syllabus because (assuming you have read the course) you won't recognise the topic being examined! The main topic that is no longer included in Subject CT8 is asset liability modelling.
In addition:
- You should be aware that the material in Chapter 17 on term structure models has been completely rewritten and so the questions on this topic have a slightly different emphasis from those that appeared in Subject 109.
- A number of questions on Brownian motion and stochastic calculus from the Subject 103 exams are also relevant. Again it should be reasonably easy for you to pick out these questions from the past papers.
We think that the Subject 109 questions from 2000 to 2004 are probably all relevant to Subject CT8 except for the following:
April 2000: Q2
April 2001: Q8
April 2002: Q4, Q5, Q8
Sept 2002: Q4(ii)-(iii)
April 2003: Q2, Q4(i), Q9(ii)-(iv)
April 2004: Q10(iii)-(iv), Q11(vi)
Sept 2004: Q3(i), Q8(iii)-(iv)
In addition, the following Subject 103 questions from 2000 to 2003 are probably also relevant to Subject CT8:
April 2000: Q2, Q5
Sept 2000: Q4
April 2001: Q7
Sept 2001: Q2, Q9
April 2002: Q2
Sept 2002: Q4, Q8
April 2003: Q3, Q5
April 2004: Q1
Sept 2004: Q4, Q6, Q10
Note also that the material on utility theory and stochastic dominance was included in Subject CT7 from 2005 to 2009. The following questions may therefore be of relevance to the current CT8 syllabus:
April 2005: Q16, Q27, Q28
Sept 2005: Q3, Q8, Q12
April 2006: Q8, Q18
Sept 2006: Q6, Q29
Sept 2007: Q4, Q6, Q10, Q31
Sept 2008: Q5, Q6, Q27, Q38
April 2009: Q11
Sept 2009: Q11, Q13, Q31
Finally, the following ST5 questions refer to behavioural finance and so may be of relevance to Subject CT8:
April 2005: Q6
Sept 2005: Q4
April 2008: Q6(ii)
Sept 2008: Q3
Sept 2010: Q8
Oct 2011: Q8(ii) and (iii)
Oct 2012: Q3
Last edited by a moderator: Mar 23, 2017
