Course Two - NO MORE MACRO

[rookie]

Ok, so hows the rest of studying for course two going, seems like all anyone is talking about is Macro, which from what I understand, is the least important. Any other advice for studying the non-macro topics? can I learn Finance or interest theory from a study manual, or do I need texts?

[Toonces]

Interest theory is best learned from a study manual. I was very impressed with Broverman's seminar study guide.

In my opinion, Finance and Microeconomics are best learned from the text. They are very interesting reads, unlike the interest theory book, pretty light on the math, and the study guides are mostly a less interesting outline.

[tryinghard]

I am having a lot of trouble with Interest theory,the text is too mathematical without enough explanation of the basis of the formulaes.
I thought it was a good idea to do the questions at the end of the chapters,but it has really reduced my speed and after reading some of the comments on the topic here I feel I need not do any of the text book questions and should stick to questions from Actex and CSM...
Any thoughts around this?

[mopete]

hmmm...depends on the text. Personally, I used Kellison's Interest Theory. I agree it is theoretical, and often involves proofs not practical for an SOA exam.

The Actex, while theoretical as well, is an excellent manual for the interest theory part of the exam. However, I think it is best used by someone who either has taken a course in the material, or is not writing this exam for the first time. i.e. if you think the text pulls crap from nowhere, you might run into the same roadblock with the Actex.

What specific concepts are bogging you down? This might sound stupid, but the concepts really just revolve around present value / accumulated value, and the transactions gradually get more complicated, but the fundamentals don't change. Perhaps take the long route with the text, at least in the early chapters, with the expectation that later chapters are building on similar material and will come a little easier.

[Dr T Non-Fan]

Interest theory is all about the cash flow time line.
Once the cash flows are put on a time line, it becomes a matter of which cash flows to group together.
1. Group a constant amount, and learn annuity formulas. Know the difference between formulas for bop and eop payments.
2. Group the patterned increasing/decreasing amounts, and learn the Ia & Da formulas.
3. Learn how to simplify exponentially increasing continuous cash flows. It's easier than you think.
4. Learn how to make certain formulas from scratch, and note the time it takes to re-create them, then note how much time you get for an exam. then, decide which ones to remember and which ones to derive.

[Cynic]

If you have problems understanding the Interest Theory part, try Klein's How-to-Pass. I found it very helpful. You may pick up a few tricks there, too.

[Trout]

Actually I found reading the textbook is pretty much enough for course 2. Interest theory may need a study manual (I do not know since I did not use it either), but the other topics, I suggest you read the books. The point is you need to understand the material to answer the questions, and I do not think there is a book/manual better than the textbook.

[Drzy]

I'm using Klein's How-to-Pass manual this time around, and I don't see how anything could possibly be better. But it does assume you have a very basic knowledge of the material... it seems like it's better suited for those who've failed the exam once before.

[rookie]

I bought How To pass, the material is new to me, so Im gonna try and read through the material once using either the text or the Temple manual, then I am going to read the how to pass, then I am going to work on CSM practice problems, then old exams. Hopefully I wont run out of time. Does this sound like a good plan?

[Brutè]

On 2002-02-01 19:54, rookie wrote:
I bought How To pass, the material is new to me, so Im gonna try and read through the material once using either the text or the Temple manual, then I am going to read the how to pass, then I am going to work on CSM practice problems, then old exams. Hopefully I wont run out of time. Does this sound like a good plan?

That's similar to my plan. What is this 'how to pass manual'. I don't have that but it sounds like I should get it.

[rookie]

its new, its by klein. he breaks down the problems into types and tries to teach you how to identify the problem type and then how to solve it. At least thats what I gather from flipping through it, I havent read it yet.. I'll save that till April

[bg23516]

Here's what I have found best for Course 2. I've been studying since Jan. 1... done maybe 75-80 hours, all in Price Theory and Interest Theory.

For Interest theory, I was in the same boat. I could read the book, and take notes, but the questions in the chapter weren't really helpful. I found an old CAS 4A study manual at work, and found that it had questions divided up by chapter's of the old Parmenter text. Since the books coincide for much of the early material, you can get lots of practice on the basic concepts. Everything builds on the way the basics work. I think I did around 100 Ch. 1 & 2 questions, and they helped immensely for my understanding of what I'm reading now.

HTH.

[seblavoie]

For the interest Theory, I used the Kellison's interest theory book for the theory and the Actex study manual to get practice. I suggest to you also a couple chapter of the Brayler-Myers book, principles of corporate finance (6th edition). So, with that you should get a really good preparation for the course 2!

[Anonymous]

I'm reading the Principles of Corporate Finance (Brealey/Myers). There are a large number of questions at the end of each chapter. I've been working on both the Quiz questions and the Practice questions. Can you please tell me if I need to work on all of these questions? It's getting a little tedious.

[rawl316]

My advice is no... get the CSM manual and work on the questions for finance from there. And of course do old exam questions.

<font size=-1>[ This Message was edited by: rawl316 on 2002-02-06 10:22 ]</font>

[Toonces]

Samantha, I did the Quiz questions at the end of each chapter. they're pretty basic, but good enough to see if you have the concept down. I found them more useful then actex.