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  #291  
Old 01-08-2020, 05:00 PM
SkolChicago SkolChicago is offline
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For those who have done the package, what would you recommend as a problem set on the first pass? CF end of section original problems, RF Problem Pack, or historical? I'd like to just do one on the first try to try and keep pace.
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  #292  
Old 01-09-2020, 12:38 AM
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For those who have done the package, what would you recommend as a problem set on the first pass? CF end of section original problems, RF Problem Pack, or historical? I'd like to just do one on the first try to try and keep pace.
Wondering about the same thing. What would be a good strategy when it comes to CF+RF material?

Should I go over the material once, only using CF, then go back to look at RF for the hard sections?
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  #293  
Old 01-09-2020, 01:40 PM
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For those who have done the package, what would you recommend as a problem set on the first pass? CF end of section original problems, RF Problem Pack, or historical? I'd like to just do one on the first try to try and keep pace.
I liked doing the CF end of section original problems on the first pass. I use RF to practice problems and memorize.
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  #294  
Old 01-09-2020, 05:23 PM
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Dang after a few weeks this is going to be an absolute slog. I was maintaining some semblance of hope that I would be interested in some of the material but so far I'm really bored by this stuff.
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  #295  
Old 01-09-2020, 05:33 PM
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It's not so bad. 9 is worse. You can do it.
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  #296  
Old 01-09-2020, 06:24 PM
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Dang after a few weeks this is going to be an absolute slog. I was maintaining some semblance of hope that I would be interested in some of the material but so far I'm really bored by this stuff.
lol same. 0 experience and 0 interest in the exam 7 material, only motivation is the FCAS title and pay bump
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  #297  
Old 01-09-2020, 11:13 PM
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page 13 of Brehm, I strongly disagree that " All of the previously discussed parameters risks are non-diversifying". What if you diversify your models and use ensembles for each one? At the very minimum this makes "Estimation Risk" diversifiable
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Old 01-10-2020, 12:51 AM
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or does the definition of a non-diversifying risk strictly mean that increasing volume of exposure -> lower risk? in that case, I guess no matter how many models you used, your remaining error will apply to all risks, thus adding more exposure doesn't reduce it
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  #299  
Old 01-11-2020, 01:03 PM
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what is the difference between economic capital and risk based capital?
You are so ahead, I'm still on section A....

That being said, Here's what I remember from exam 9

In the absence of a risk margin included in the premium or the reserves, the risk capital and the economic capital may be identical


Economic capital: the capital required to ensure a specified probability (level of confidence) that the firm can achieve a specified objective over a given time horizon

Risk capital: the amount of capital that must be contributed by the shareholders of the firm in order to absorb the risk that liabilities will exceed the funds already provided for in either the loss reserves or in the policyholder premium
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Old 01-11-2020, 01:43 PM
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You are so ahead, I'm still on section A....

That being said, Here's what I remember from exam 9

In the absence of a risk margin included in the premium or the reserves, the risk capital and the economic capital may be identical


Economic capital: the capital required to ensure a specified probability (level of confidence) that the firm can achieve a specified objective over a given time horizon

Risk capital: the amount of capital that must be contributed by the shareholders of the firm in order to absorb the risk that liabilities will exceed the funds already provided for in either the loss reserves or in the policyholder premium
I deleted my question cuz I sort of figured it out

I realised that risk-based capital is more complicated and includes additional risk margins and such, and economic is just like the default capital level. seems to agree with what you said.
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