What is an actuarial control cycle? The actuarial control cycle is a fundamental tool of risk management which involves the process of analysing, quantifying, mitigating and monitoring risks. List few applications of actuarial control cycle to actuarial work. a) Asset-liability management b) Model validation c) Monitoring the effect of investment mismatching d) Assessing the need …
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CP1 Actuarial Practice
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CB2 Business Economics
WHAT HAPPENS WHEN MB > MC? If MB > MC, then we should increase production of respective good, and decrease the production of other goods, since the value of one more unit of good, MB, is greater than the value of goods we must forego to make it, MC. WHY IS PPC NOT A STRAIGHT …
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CB1 Business Finance
HOW FUTURES ARE DIFFERENT FROM FORWARDS? A forward is an agreement between two parties to trade a specified asset at a set date in the future at a set price whereas futures are standardised and exchange-tradeable. WHAT ARE DERIVATIVES? A derivative is a financial instrument that derives its value from the value of some other …
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CS2 Risk Modelling & Survival Analysis
WHAT IS A COUNTING PROCESS? A counting process is a stochastic process, X , in discrete or continuous time, whose state space is the collection of natural numbers {0,1,2,…}. WHAT IS MEANT BY SAMPLE PATH OF A PROCESS? A sample path is the sequence of outcomes of a particular set of experiments i.e. THEIR JOIN …
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CS1 Actuarial Statistics
DIFFERENTIATE BETWEEN CONTINUOUS RANDOM VARIABLE & DISCRETE RANDOM VARIABLE? Discrete random variables are random variables that take a finite number of values. For example, the outcome of rolling a die. Continuous random variables, on the other hand, can take on any value in a given interval. WHAT IS LAW OF LARGE NUMBERS? Law of large …
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CM2 Financial Engineering & Loss Reserving
WHAT ARE THE DIFFERENT FORMS OF EFFICIENT MARKETS? Efficient market consists of: weak form market where market prices reflect all of the information contained in historical price data, semi-strong form is one where market prices reflect all publicly available information & strong form is where market prices reflect all information, whether or not it is …
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CM1 Actuarial Mathematics
WHY DO WE PAY INTEREST? Since, lenders provide borrowers with money for a specified period of time, lender will not be able to use that money during that time, so to make up for this inconvenience along with protecting lenders from the risk of default by the borrower, lender demands interest which may either be …
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