Actuarial Outpost
 
Go Back   Actuarial Outpost > Exams - Please Limit Discussion to Exam-Related Topics > SoA > Modules 1-5
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions


Not looking for a job? Tell us about your ideal job,
and we'll only contact you when it opens up.
https://www.dwsimpson.com/register


Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 05-11-2017, 07:52 PM
Zaboor Zaboor is offline
Member
 
Join Date: Dec 2008
Posts: 79
Default EOM 2 - quantitative requirements

The very first question for eom2 is to identify the external forces having the greatest influence on sovereign spread(SSx) and currency risk (CEx). However, the 8 factors affecting SSx are already listed in the Cantor and Parker reading. Is it sufficient just to repeat these in our paper? I feel like I'm missing something.

Moreover, for each factor affecting SSx and CEx , do we need to quantify the relationship? For example, can I just say that income affects SSx, or do I need to write something like for every $1000 increase in personal income, sovereign ratings are expected to increase by 1.242 and this is significant at the 1% level. If so, would this level of quantifying apply to the rest of the assignment as well?
Reply With Quote
  #2  
Old 05-12-2017, 10:43 AM
PassionVoid PassionVoid is offline
Member
SOA
 
Join Date: Dec 2014
Favorite beer: Bud Light, a lot of it
Posts: 245
Default

Quote:
Originally Posted by Zaboor View Post
The very first question for eom2 is to identify the external forces having the greatest influence on sovereign spread(SSx) and currency risk (CEx). However, the 8 factors affecting SSx are already listed in the Cantor and Parker reading. Is it sufficient just to repeat these in our paper? I feel like I'm missing something.
Don't think too much about it. If the answer is given to you in the reading, use it.

Quote:
Originally Posted by Zaboor View Post
Moreover, for each factor affecting SSx and CEx , do we need to quantify the relationship? For example, can I just say that income affects SSx, or do I need to write something like for every $1000 increase in personal income, sovereign ratings are expected to increase by 1.242 and this is significant at the 1% level. If so, would this level of quantifying apply to the rest of the assignment as well?
My responses were basically "higher income increases SSx," definitely no numbers.

I MMRed.
__________________
ASA

FSA Exams: ERM ILALP ILALFV
Reply With Quote
  #3  
Old 05-12-2017, 12:54 PM
Zaboor Zaboor is offline
Member
 
Join Date: Dec 2008
Posts: 79
Default

Thanks for the response PassionVoid. Just a couple of more questions:

With regards to factors affecting CEx, these aren't really mentioned in the readings (at least not explicitly). Can I just google these or are they mentioned in the readings somewhere and the candidate is expected to "read between the lines"?

Most of my answers thus far are qualitative, except for the estimates of SSx and CEx. Did anyone use any graphs, equations, or excel tables at all in their write up?
Reply With Quote
Reply

Tags
eom2

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 04:57 AM.


Powered by vBulletin®
Copyright ©2000 - 2019, 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 0.15883 seconds with 11 queries