Sept 2014 past paper

[rlsrachaellouisesmith]

Hi,

1) Sept 2014 - Q5(i) could we use a table to show our response?

2) Sept 2014 - Q7 why the use of compare and contrast as command verbs in (iii). Compare seems to cover similarities and differences so why use contrast also, should we be doing something different?

3) Sept 2014 - Q7(ii) the solutions include Swaps. how do Swaps give exposure to property returns? Could we also include property company debt, property index tracking fund, PE that specialises in property, derivatives on property shares, Infrastructure - where the asset is property? I also included direct - residential, commercial. The marks given here are 8, very generous, would you agree that if we had this question for this number of marks in a paper today that we would have to give 16 examples? Property has appeared in earlier subjects and is not explicitly included in the notes for SP5, what do you think the likelihood of a 24 mark question on property is? I would say very low. Was Property more of a prominent section in the notes back in 2014?

Thank you,

Rachael

 

[Colin McKee]

Answering in a word table rather than bullets is fine. For details on instructions words, search for the IFoA list of the instructions words that they use. Compare and contrast may have some overlap between the two terms. Sept 2014 Q7: swaps can certainly be used to get exaposure to anything really, eg pay fixed receive return on a property index. Property debt does not give exposure to the property prices though. Examiners would have awarded marks for most reasonable suggestions. I think the number of ideas has not changed since 2014, so the solution might look the same. I cannot comment on the likelihood of specific questions appearing in the forthcoming exams though, as I have no connection with the exam team.