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 Showing results 1 to 25 of 300 Search took 1.00 seconds. Search: Posts Made By: Academic Actuary
 Forum: Financial Mathematics 06-14-2019, 09:26 PM Replies: 6 Views: 219 Posted By Academic Actuary He purchased an annuity immediate at time two. ... He purchased an annuity immediate at time two. The annuity made the first payment at the end of the year which is time three.
 Forum: Financial Mathematics 06-14-2019, 09:22 PM Replies: 117 Views: 3,126 Posted By Academic Actuary Money market funds values do not change with... Money market funds values do not change with changes in interest rates as they earn the prevailing interest rate (in practice money market funds can hold instruments with maturities up to a year so...
 Forum: Financial Mathematics 06-12-2019, 12:01 PM Replies: 117 Views: 3,126 Posted By Academic Actuary His answer is based upon converting the yield... His answer is based upon converting the yield curve given in terms of spot rates into forward rates. To accumulate the amount you take out loans of one and two years to be repaid with annuity...
 Forum: Financial Mathematics 06-11-2019, 11:54 PM Replies: 117 Views: 3,126 Posted By Academic Actuary With the house you pay for the house completely... With the house you pay for the house completely at the time of purchase. As most people don't have that amount of cash they borrow a large part of the purchase price. You can lock in your payments...
 Forum: Financial Mathematics 06-09-2019, 08:24 PM Replies: 117 Views: 3,126 Posted By Academic Actuary Forecast the actual earnings, don't use 10. You... Forecast the actual earnings, don't use 10. You have discounted for one too many years as the dividend discount formula uses the dividend at the end of the year.
 Forum: Financial Mathematics 06-08-2019, 10:40 PM Replies: 117 Views: 3,126 Posted By Academic Actuary What is the source of this problem? Is it one of... What is the source of this problem? Is it one of the sample SOA problems? If not it could have been a misstatement as the B5|8% should be referred to as the amortized or sometimes book value of the...
 Forum: Financial Mathematics 05-31-2019, 10:16 PM Replies: 117 Views: 3,126 Posted By Academic Actuary Are you using v based upon one month. Are you using v based upon one month.
 Forum: Financial Mathematics 05-30-2019, 10:35 PM Replies: 117 Views: 3,126 Posted By Academic Actuary The equation you have to solve is .5 =... The equation you have to solve is .5 = v^(120-k+1) You can use logarithms or use the calculator with PV = .5 and FV = -1 and cpt N and solve for k. You will get a non integer value so the...
 Forum: Financial Mathematics 05-30-2019, 10:19 AM Replies: 4 Views: 197 Posted By Academic Actuary The first definition allows for the force to vary... The first definition allows for the force to vary over time. It is the most general formula. If you assume a constant effective rate of interest: A'(t)/A(t) = [(1+i)^t]'/(1+i)^t = ln(1+i) ...
 Forum: Financial Mathematics 05-28-2019, 12:43 AM Replies: 117 Views: 3,126 Posted By Academic Actuary If you study finance, you learn that NPV is... If you study finance, you learn that NPV is always the preferred method of project evaluation.
 Forum: Long-Term Actuarial Math 05-28-2019, 12:35 AM Replies: 19 Views: 1,272 Posted By Academic Actuary We messed up. You are correct in your original... We messed up. You are correct in your original equation.
 Forum: Long-Term Actuarial Math 05-27-2019, 11:59 PM Replies: 19 Views: 1,272 Posted By Academic Actuary Once the life has attained age x+s the pdf... Once the life has attained age x+s the pdf uniform (0, 1-s). I always found it easier to think in terms of a cohort and use d's and l's. Over any time interval t within the given age the number of...
 Forum: Long-Term Actuarial Math 05-27-2019, 10:40 PM Replies: 19 Views: 1,272 Posted By Academic Actuary It would be true if you were assuming constant mu... It would be true if you were assuming constant mu between integral ages. Under UDD the force of mortality is increasing so the value on the right hand side would be larger.
 Forum: Financial Mathematics 05-27-2019, 10:25 PM Replies: 117 Views: 3,126 Posted By Academic Actuary Initial value and deposits will have the same... Initial value and deposits will have the same sign as will withdrawals and ending value. Whether you call it an inflow or outflow depends on whether you are looking from the perspective of the fund...
 Forum: Financial Mathematics 05-27-2019, 09:53 PM Replies: 117 Views: 3,126 Posted By Academic Actuary The initial value and deposits are outflows,... The initial value and deposits are outflows, while the withdrawal and ending values are inflows. By IRR I assume it means using compound interest as if you used simple interest it is the same as...
 Forum: Financial Mathematics 05-27-2019, 09:40 PM Replies: 117 Views: 3,126 Posted By Academic Actuary One mistake is your dollar weighted formula has... One mistake is your dollar weighted formula has the withdrawal after 10 and not 11 months. The more significant mistake is your time weighted formula should us the fund value prior to the withdrawal.
 Forum: Financial Mathematics 05-27-2019, 05:15 PM Replies: 117 Views: 3,126 Posted By Academic Actuary The \$10 dividend should have a negative sign. It... The \$10 dividend should have a negative sign. It is a payment from the fund to you. If i is the effective annual rate you would have 100(1+i)^2 - 40(1+i) = 180.
 Forum: Financial Mathematics 05-14-2019, 10:21 PM Replies: 117 Views: 3,126 Posted By Academic Actuary I messed up. I thought they went X, 2X,..... and... I messed up. I thought they went X, 2X,..... and not 2X,X.....
 Forum: Financial Mathematics 05-14-2019, 08:19 PM Replies: 117 Views: 3,126 Posted By Academic Actuary There's a quicker way to get the answer. ... There's a quicker way to get the answer. Calculate the level payment that would have to be made at the end of every second year. 0 FV -5000 PV 10 N 18.147 I/Y CPT ...
 Forum: Financial Mathematics 05-12-2019, 05:05 PM Replies: 117 Views: 3,126 Posted By Academic Actuary 6% is the nominal, not the effective rate. You... 6% is the nominal, not the effective rate. You are working in quarters so the effective rate per quarter is 1.5%.
 Forum: Probability 05-12-2019, 03:43 PM Replies: 11 Views: 540 Posted By Academic Actuary In the continuous case the average will never... In the continuous case the average will never equal the expected value. In the discrete case it can but the probability of equality decreases. Consider flipping a fair coin. With 2 flips there is...
 Forum: Probability 05-12-2019, 01:49 PM Replies: 11 Views: 540 Posted By Academic Actuary Except saying on average has no precise meaning... Except saying on average has no precise meaning because your realized average will very rarely equal to true expected value. In fact as you increase n the probability that the average exactly equals...
 Forum: Probability 05-12-2019, 12:05 PM Replies: 5 Views: 339 Posted By Academic Actuary I don't understand what you are saying in the... I don't understand what you are saying in the continuous cast. Let's say I have the pdf x/2 0
 Forum: Probability 05-12-2019, 11:01 AM Replies: 5 Views: 339 Posted By Academic Actuary An explanation from economics is that the... An explanation from economics is that the expected value is the maximum price someone that is risk neutral who guesses the answers, would pay to take the test where the prize is the number of correct...
 Forum: Probability 05-08-2019, 09:52 PM Replies: 11 Views: 540 Posted By Academic Actuary Repeat the test n times selecting answers at... Repeat the test n times selecting answers at random. Sum the scores and divide by n, That is your sample average. Specify an epsilon and a probability. You can determine an n such that the...
 Showing results 1 to 25 of 300

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