Calculate the expected value, variance, and standard deviation of both the loss random variable and the corresponding payment random variable upon the application of policy adjustments.
In the previous reading, we covered the fundamental ideas of deductibles, coinsurance, benefit limits, and inflation in the context of insurance. In this reading, we will focus on more quantitative aspects. Specifically, we will perform calculations to determine the expected…
Apply the concepts of deductibles, coinsurance, benefit limits, and inflation to convert a given loss amount from a policyholder into the corresponding payment amount for an insurance company
Policy modifications refer to changes made to the loss random variable for an insurance product. In this chapter, we will explore several policy modifications, each serving a specific purpose in enhancing insurance coverage. These modifications include: Deductibles Benefit/policy limits Coinsurance…
Exam IFM Syllabus – Learning Outcomes
1. – Mean-Variance Portfolio Theory 2. – Asset Pricing Models 3. – Market Efficiency and Behavioral Finance 4. – Investment Risk and Project Analysis 5. – Capital Structure 6. – Introductory Derivatives – Forward and Futures 7. – Option Greeks and Risk Management 8. – General Properties of…
Exam FM Syllabus – Learning Outcomes
1. Time Value of Money2. Annuities/cash flows with non-contingent payments3. Loans4. Bonds5. General Cash Flows and Portfolios6. Immunization7. Interest Rate Swaps8. Determinants of Interest Rates
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Chapter 1-General Probability Reading 1 Question 4
Determinants of Interest Rates
After completing this chapter, the candidate will be able to: Define and recognize the components of interest rates, including real risk-free rate, inflation rate, default risk premium, liquidity premium, and maturity risk premium. Explain how the components of interest…
Interest Rate Swaps
AnalystPrep’s Actuarial Exams Preparation Materials For our question bank, study notes, quizzes, and all our video lessons: https://analystprep.com/shop/learn-practice-package-for-soa-exam-fm/ After completing this chapter, you should be able to: Define and recognize the definitions of the following terms: swap rate, swap term or swap tenor,…
Immunization
AnalystPrep’s Actuarial Exams Preparation Materials For our question bank, study notes, quizzes, and all our video lessons: https://analystprep.com/shop/learn-practice-package-for-soa-exam-fm/ After completing this chapter, the candidate will be able to: Define and recognize the definitions of the following terms:cashflow matching,immunization (including full immunization),Redington immunization. Construct…
General Cash Flows and Portfolios
AnalystPrep’s Actuarial Exams Preparation Materials For our question bank, study notes, quizzes, and all our video lessons: https://analystprep.com/shop/learn-practice-package-for-soa-exam-fm/ After completing this chapter, the candidate will be able to: Define and recognize the definitions of the following terms:inflation and real rate of interest,…
Bonds
AnalystPrep’s Actuarial Exams Preparation Materials For our question bank, study notes, quizzes, and all our video lessons: https://analystprep.com/shop/learn-practice-package-for-soa-exam-fm/ After completing this chapter, the candidate will be able to: Define and recognize the definitions of the following terms: price, book value, amortization of…
