Actuarial Outpost July 2018 IFM Exam
 Register Blogs Wiki FAQ Calendar Search Today's Posts Mark Forums Read
 FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

 Upload your resume securely at https://www.dwsimpson.com to be contacted when new jobs meet your skills and objectives.

 Investment / Financial Markets Old Exam MFE Forum

#11
04-15-2018, 03:54 PM
 ngxxx081 Member SOA Join Date: Nov 2008 Posts: 113

Would someone be kind enough to provide a little more detail on how to calculate the covariance for example 5D to the IFM ASM manual 1e1p on page 64? How is the answer .00257? I keep getting a different answer and I have gone so far as creating a table of all the intermediate calculations - see attached.

Basically took the differences between the return of a stock and its respective average (expected) return, multiplied both differences, summed them all up, and divided by one less than the number of observations. I keep getting .001476.

Any help would be appreciated. Thank you.
Attached Images

#12
04-15-2018, 06:53 PM
 tkt Member CAS SOA Join Date: Jun 2011 Location: Des Moines College: Drake University Posts: 509

Quote:
 Originally Posted by ngxxx081 Would someone be kind enough to provide a little more detail on how to calculate the covariance for example 5D to the IFM ASM manual 1e1p on page 64? How is the answer .00257? I keep getting a different answer and I have gone so far as creating a table of all the intermediate calculations - see attached. Basically took the differences between the return of a stock and its respective average (expected) return, multiplied both differences, summed them all up, and divided by one less than the number of observations. I keep getting .001476. Any help would be appreciated. Thank you.
This is probably an error. Based on the stock prices in your image, I got the same answer for covariance as yours, which is 0.00147551. You can report this error to Abe at mail@studymanuals.com.
__________________
Tong Khon Teh, FSA, CFA
Product Manager, Actuarial
coachingactuaries.com
#13
04-15-2018, 07:10 PM
 ngxxx081 Member SOA Join Date: Nov 2008 Posts: 113

Quote:
 Originally Posted by tkt This is probably an error. Based on the stock prices in your image, I got the same answer for covariance as yours, which is 0.00147551. You can report this error to Abe at mail@studymanuals.com.
I sent an Email to Abe. Thank you.
#14
04-15-2018, 07:25 PM
 Abraham Weishaus Member SOA AAA Join Date: Oct 2001 Posts: 7,199

I agree, it is an error.
#15
05-03-2018, 07:57 PM
 anothermathteacher Non-Actuary Join Date: Aug 2017 College: Wesleyan University Posts: 14
Standard normal values, ASM?

Hi all,

I'm using ASM and I am wondering how they get such exact values for their normal distributions. I'm using a standard normal table found on google that allows you to input up to two decimal places, but my calculations are always slightly off since ASM's values are more exact. I used the same table while studying for Exam C and Mahler's values and mine always matched.

Any suggestions on good sources for more exact values of normal distributions?
#16
05-03-2018, 08:03 PM
 Abraham Weishaus Member SOA AAA Join Date: Oct 2001 Posts: 7,199

Quote:
 Originally Posted by anothermathteacher Hi all, I'm using ASM and I am wondering how they get such exact values for their normal distributions. I'm using a standard normal table found on google that allows you to input up to two decimal places, but my calculations are always slightly off since ASM's values are more exact. I used the same table while studying for Exam C and Mahler's values and mine always matched. Any suggestions on good sources for more exact values of normal distributions?
I use Excel, rounding to 5 places. On exams you'll get Prometric's calculator which rounds to 5 places (unless you're taking it in a paper-and-pencil site). You may access it here
https://www.prometric.com/en-us/clie...alculator.aspx
#17
05-06-2018, 06:45 AM
 Bell Member Join Date: Jun 2005 Posts: 397

Quote:
 Originally Posted by anothermathteacher Hi all, I'm using ASM and I am wondering how they get such exact values for their normal distributions. I'm using a standard normal table found on google that allows you to input up to two decimal places, but my calculations are always slightly off since ASM's values are more exact. I used the same table while studying for Exam C and Mahler's values and mine always matched. Any suggestions on good sources for more exact values of normal distributions?
As already said by ASM, go to Excel and use the normdist or more specifically (for the standard normal), use normsdist.

Thanks.
__________________
Bell F. Ouelega FSA CERA MAAA CQF
PAK Study Manual Instructor
Quantitative Finance & Investment Track

http://www.pakstudymanual.com/
#18
05-06-2018, 02:35 PM
 MathDoctorG Member Non-Actuary Join Date: Nov 2010 Location: The 'ville College: Cornell Posts: 652

James wrote this app for iOS a few years ago which is intended to mock up the results that you get from the Prometric calculator.

FREE TIA Normal Calculator iOS app
__________________

MAS-I Course, SRM Course,
TIA Apps
#19
05-14-2018, 03:03 AM
 Bell Member Join Date: Jun 2005 Posts: 397
MFE Results March 2018

MFE Results:

(i) Congratulations to all those who just passed the MFE exam. Awesome...

(ii) To those who did not, the moment is right to start preparing for the July 2018 exam. I strongly encourage you to try the PAK manual, since there is a whole lot of explanation of concepts, working examples and challenging exam-type questions. Most likely, you may find the detailed explanations for the things you did not get right on the prior exam.

Give it a try and you will not regret it!!
__________________
Bell F. Ouelega FSA CERA MAAA CQF
PAK Study Manual Instructor
Quantitative Finance & Investment Track

http://www.pakstudymanual.com/
#20
05-14-2018, 11:39 AM
 ToBeAnActuaryOrNotToBe Member SOA Join Date: May 2014 Favorite beer: The ones in red solo cups. Posts: 672

Got a 5 on MFE. Gonna start studying for this IFM exam now. Gawwddd... so mad at myself.