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Old 05-05-2017, 06:59 PM
newts newts is offline
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Default Spring 2017 Discussion Thread

Fine. I'll do it.

I'm less angry at the CAS than I thought I would be.
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Old 05-05-2017, 07:06 PM
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wow. Are they serious with that thing?

Hardest exam I've ever taken.
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Old 05-05-2017, 07:09 PM
el_zilcho el_zilcho is offline
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Tons of questions for so few points.

Definitely was pressed for time, but maybe I write too much.
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Old 05-05-2017, 07:14 PM
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I don't really remember the answers to a lot of the questions. I didn't feel like the IQ was too bad. I finished with a lot of time to spare. The only problem I had difficulty on was the TIPS question.
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Old 05-05-2017, 07:14 PM
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The exam was much too long IMHO. First time I've ever ran into serious time issues. Skipped a couple of subparts so I could attempt every question (left one blank) and still ran out of time on the last question (so never got back to those). Think I at least gave myself a shot regardless but we'll see in a few weeks.
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Old 05-05-2017, 07:22 PM
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I thought it was fair. Definitely long, but I probably wrote too much for most questions.
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Old 05-05-2017, 07:23 PM
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I definitely appreciate that they put the IQ front and center instead of trying to hide it at the end.

The franchise value question with changing retention rates was mean.

I have no idea what they were asking for on the last problem.

If arbitrate has no initial outlay, what denominator can you use to calculate return?
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Old 05-05-2017, 07:25 PM
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So what'd you guys get for the IRR
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Old 05-05-2017, 07:28 PM
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I definitely appreciate that they put the IQ front and center instead of trying to hide it at the end.

The franchise value question with changing retention rates was mean.

I have no idea what they were asking for on the last problem.

If arbitrate has no initial outlay, what denominator can you use to calculate return?
For the franchise value, I calculated it for 1 year's worth of renewals, and then I calculated it for years 2 thru infinity. Then I discounted those to the present and added them together.

Last problem, I calculated the standalone risk loads and the aggregate, and used that to determine the risk load ranges. The risk loads for A and B can't be greater than they are in the standalone case. They can't also be so low that they do not add to the aggregate.

For the arbitrage problem, you should remember to borrow money at the risk free rate. So the return is the return of the long position minus the risk free rate.
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Old 05-05-2017, 07:32 PM
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I feel good about it overall. Just waiting to hear all the random things I messed up.

I got 35% for IRR. Wasted 10 min fumbling the quadratic equation and didn't have time to worry about double checking.
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