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Stupid April 2005

  • Thread starter ActuaryStudentUK
  • Start date
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ActuaryStudentUK

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Anyone got better solutions for this.

I don't get this - question 5 has dB = B{ r(1-(mu)(T-t))dt - (sigma)(T-t)dZ }

which gives m(t,T) = r(1 - (mu)(T-t)) and s(t,T) = - (sigma)(T-t)

so if you calculate the market price of risk
(gamma) = [m(t,T) - r]/s(t,T)

they get (mu) / [(sigma)r]

I get (mu)r / [sigma]

Am I wrong or is it the solutions again?
 
you are correct, the examiner shouldn't collect £200 and shouldn't pass Go.
 
You are right.
(Confirmed by my revision notes)

Maybe we should apply for Examiners jobs.
 
That's exactly not the point.
You were right, but it would have been marked wrong.

No "one extra point".
 
The quality of answers and questions is quite frankly a joke. There is no excuse whatsoever for errors to appear in the questions or solutions of any actuarial exams.

They have perfect conditions to set and test the questions, multiple examiners and markers, yet they slip through year after year...

Very poor.
 
I don't want to start a war,but (Gareth, have you read my post in Ryan's work experience thread?)

Maybe that's exactly the reason why its beneficial to study through university.
Mine doesn't ever make mistakes, maybe one reason why students pass more quickly, becuase there correct answers are awarded marks.

Cheers

(I think we might be taking it too far, the solutions are only the initial ones and they should be updated (they are actually) to include other relevent views and to correct "typo's".)
 
i agree, my uni never made mistakes either...

if these aren't "final" solutions, why on earth does the Institute publish them?
 
Both those errors were from the solutions I got straight off the website so they weren't updated. Nice.

Anyway, with or without the extra mark - I'm still sucking at this. Am I really that crap or was that paper harder than I thought?
 
it's probably a bit late in the day to worry about whether you're sucking at it or not.

just make sure you can remember your book work and relax.
 
that's watching season 5 of 24 for me! exciting stuff tonite...
 
I bet that some of your unis did make mistakes - but questions and any solutions available didn't get scrutinised quite as much.
I hear that many of the examiners in the CT ubjects are University bods!
 
2008 Mar 21

...two years later, and it still has not been corrected.
 
yer i thought of that, but there's not even a space in between, if putting a bracket was difficult.

but the bottom line is we all agree what the answer should be. :) cheers
 
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