All Things 8F, 8V and 8I

[2TTC]

After browsing through the "All Things 8V" thread, I noticed that there is some overlap between the 8F and 8V syllabi (e.g., Real Options). Since I am taking 8F in the fall and there is very little posting for this exam, I thought it would be worthwhile to make a list of all the texts and study notes the two exams have in common. As mentioned by JYR below, there is also overlap with exam 8I. I came up with the following list:


8F and 8V
The New Corporate Finance: Where Theory Meets Practice: Article V. 28 (Strategic Risk Management)
Real Options
8V-103-00 (8F-309-01) Managing Currency Exposures in International Portfolios
8V-116-00 (8F-310-01) Risk2: Measuring the Risk in Value at Risk
8V-117-00 (8F-311-01) VAR—Seductive but Dangerous
8V-201-00 (8F-402-00) Financial Decision-Making in Markets and Firms: A Behavioral Perspective
8V-311-00 (8F-307-01) Total Return Approach to Performance Measurement
8V-313-01 (8F-305-01) Variable Annuities—“no loss” Propositions
8V-315-02# (8F-316-02) Chapter 22 of Life Insurance Accounting, Asset/Liability Management
8V-316-02# (8F-319-02) Asset-Liability Management for Insurers
8V-317-02# (8F-317-02) An Approach to Fair Valuation of Insurance Liabilities Using the Firm’s Cost of Capital
8V-318-01 (8F-320-01) Chapter 4 of The Fair Value of Insurance Business, Fair-Value Accounting for Financial Liabilities
Investment Management for Insurers, Chap. 1 (SN 8F-203-00) Risk Management by Insurers: An Analysis of the Process

8F and 8I:
TSA XXXVIII, pp. 105–116. Strategic Management of Life Insurance Company Surplus
(8I-300) 8F-302-00 Income-Based Reserves
(8I-301) 8F-303-00 Solvency-Based Reserves


So, if anybody taking one of these exams has a question on these readings, it would be beneficial for all to post it in this thread. This way, we'll all be able to reach a bigger audience. :)

(Feel free to mention any readings I may have accidentallly left out, and I'll edit this message to include them.)

[Me]

Hi, 2TTC!

Have you looked at that 317 SN (Cost of Capital)? It's really ugly, but I've occasionally been trying to work through the GIC example at the end. Do you have any idea about the formulas for Table 6?

Do you 8F people get a formula cheat sheet too? Are the formulas from this paper on it?

[RedSoxFan]

What's this about a cheat sheet? That's not fair! I didn't know 8V was so easy..

SN 317 is terrible. It wasn't well worded. I had to read everything three times and still couldn't make much sense of the stuff. I sure hope they don't ask a question from it.

[2TTC]

I just can't seem to get through SN 317! It's awful. :evil: I haven't gotten to the GIC example yet, but when I do I'll post my thoughts on it (gibberish though they may be).

[JYR]

What you did is very good, I think that discussions around SNs common to the various course could be facilitated in this way.

Also common w/8V (Investment):
- (Investment Management for Insurers, Chap. 1) SN 8F-203-00 Risk Management by Insurers: An Analysis of the Process

Also common w/8I (Individual):
- TSA XXXVIII, pp. 105–116. Strategic Management of Life Insurance Company Surplus
- (8I-300) 8F-302-00 Income-Based Reserves
- (8I-301) 8F-303-00 Solvency-Based Reserves

If you want you could revise the title to include 8I as well... this way we get more exposure. Hope this help!

[2TTC]

Thanks, JYR. I edited the title and the initial post to include 8I (I should have realized this earlier, considering I posted a comment in another thread about Income-Based reserves being an 8F/8I reading :oops: )

[failed8v]

Obviously more people discussing papers will be good. However, I do not think volunteers are serving in more than one committee. Therefore, emphasis will be different.

As I said It is good to have more discussion.

[mayreeh]

Income based reserves

When I first read the study note, I thought it was easy to follow - but trying to come up with a condensed outline that covers the material is murder because of the way they skip around all over the place.

Has anyone got any suggestions on how to distill this one into nice memorizable format?

[JYR]

I agree with part of the argument from Failed8V about difference in Testing Focus for each course but we should keep in mind that the common concepts are mainly actuarial concepts and that related discussions should be fairly "universal".

About Testing Focus for Exam 8F, lets discuss about what everyone feels are the key chapters... please link to http://www.actuary.ca/phpBB/viewtopic.php?t=6496

[julieml]

Is the Case Study for 8F the same as last year's exam?

[annabel lee]

Yes, the case study is the same as last year's. (Which is the same as the year before that, according to a friend.) It looks quite timely, though, what with the CEO being a fan of aggressive accounting. Of course, Dudley Do-Right Actuary thinks the company should be more conservative...

[yo]

Real options - simple question

example in chapter 2 - pg 31 and 32 - they're summing a series of (1/1.05)^5 to (1/1.05)^15 -- where do they get (15.380 - 3.546) ??

i don't rmember sums of series anymore, so thx in advnace.

[Double High C]

Real options - simple question

example in chapter 2 - pg 31 and 32 - they're summing a series of (1/1.05)^5 to (1/1.05)^15 -- where do they get (15.380 - 3.546) ??

i don't rmember sums of series anymore, so thx in advnace.

I don't have the example you are talking about, but it seems that they are subtracting two annuities "immediate" (i.e., where the payment begins one year from today).

Formula: (1-v^n)/i

And also, it seems that 1 of the numbers above is wrong; it should be 30 (as opposed to 1/1.05)^15); otherwise, the numbers don't work out (of course, maybe the numbers themselves are wrong; I don't have the exam/problem).

So they are subtracting aangle 4 from aangle 30.

(There is also an algebraic formula for summing series, on which the annuity formulas are based, but I won't go into that now.)