Actuarial Outpost
 
Go Back   Actuarial Outpost > Exams - Please Limit Discussion to Exam-Related Topics > CAS > CAS Exams > Exam 9 (old Part 8) - Financial Risk & Rate of Return
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Reply
 
Thread Tools Search this Thread Display Modes
  #3071  
Old Today, 11:41 AM
coinfootball's Avatar
coinfootball coinfootball is online now
Member
CAS
 
Join Date: Apr 2015
Favorite beer: Root Beer
Posts: 556
Default

Quote:
Originally Posted by Polak View Post
Spoiler:
TIA's solution is reasonable and I don't know why I didn't think of it. He just assumes CAPM and says ra = rf + Beta(rm-rf) and solves for beta. which gives him the same answer as the CAS interestingly enough. I guess that's the same as assuming there is no non-market risk as you suggested.
Spoiler:
I guess you could also use BKM 8: E(R) = a + βE(Rm). a=-.06,E[Rm]=.06,E[R]=.06 so B=2
Reply With Quote
Reply

Tags
#hawaii2019, #vegas2018, #willyplz, last exam ever, second to last exam

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 12:31 PM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.12598 seconds with 10 queries