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  #1  
Old 06-08-2010, 01:17 PM
NotsoSure NotsoSure is offline
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Default EOM6 : I don't understand anything.

as

Last edited by NotsoSure; 08-18-2017 at 08:41 PM..
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  #2  
Old 06-10-2010, 06:14 PM
jcm-high5 jcm-high5 is offline
 
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I'm with you on this one. I'm not sure where to start.
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  #3  
Old 06-10-2010, 06:44 PM
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Atropellador Atropellador is offline
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Not sure how helpful this will be, but here's how I approached the EOM exercise.

First, make sure you understand all the background on Blackrmore and their insurance product, and the assumptions they're using. Then, make sure you understand the changes they're proposing.

Think about the assumptions and modeling methodology Blackmore is using, and how it could be done better, and how and why experience could deviate from their assumptions.

Next, think about all the possible ramifications of the changes they're proposing. How well suited is their model to pricing those changes?

I started my paper with section headings according to the bullet points in the assignment. Then as I was reading the assignment, I thought of all the comments and issues I had with Blackmore's model, and jotted terse notes under the appropriate section. Afterward, I filled in each point and added some new material, and moved some around. Some sections had a dearth of material, so I tried to fill them in later, by thinking specifically about those parts of the assignment.

Finally, I re-read my paper. It was rather long, so I cut out parts that seemed more tangential or nit-picky and less essential to the assignment.
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  #4  
Old 06-10-2010, 09:25 PM
serge.l55 serge.l55 is offline
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Hi Atropellador,

I approve 100%, I would have given same advice. You are certainly going to pass your FA.
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  #5  
Old 06-13-2010, 09:18 AM
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apparition apparition is offline
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Quote:
Originally Posted by NotsoSure View Post
Yes, but I don't give a shit about Blackmore insurance. I mean, who cares? It's not even a real company.
u sure u said that?
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  #6  
Old 06-14-2010, 12:58 PM
DiversifyYoBonds DiversifyYoBonds is offline
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Quote:
Originally Posted by NotsoSure View Post
Yes, but I don't give a shit about Blackmore insurance. I mean, who cares? It's not even a real company.
NotsoSure,

I don't think anyone's going to give you a serious response at this point. Your original question about not understanding the EOM appeared sincere. Have you changed your mind?
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  #7  
Old 06-14-2010, 06:25 PM
DiversifyYoBonds DiversifyYoBonds is offline
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Quote:
Originally Posted by NotsoSure View Post
It is serious.

My main point is: I worked 100+ hours on the IA and feel really tired and exhausted. I'm not even discussing the M6 case studies. I have (had) no clue how to do that EOM6 and frankly did not care. I felt exhausted and had enough. How was I supposed to care about Blackmore after all that?

I feel a little better now Maybe ready to do that EOM.

I follow you now. You're still in IA recovery. I spent a month or so in that state, and I just now downloaded EOM6.
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  #8  
Old 06-15-2010, 11:50 AM
serge.l55 serge.l55 is offline
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NotsoSure,

I sent you a message. Check your inbox and let me know your thoughts.
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  #9  
Old 06-20-2010, 03:23 PM
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ADoubleDot ADoubleDot is offline
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I am confused.

It says "On the guaranteed issue account, they want to introduce a minimum floor on the account" of 2%. But the guaranteed issue account is a steady 1.5% right? Should this be a guaratee on the equity option? Or are they just moving the bar of the GI option by 50 basis points? What have I missed? Thanks AO.

Also, I think I am OK to ask this with some detail but advise me if I should delete/edit this post.
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  #10  
Old 06-21-2010, 11:33 AM
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Atropellador Atropellador is offline
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I downloaded the assignment some time ago, but mine says "guaranteed interest", not "guaranteed issue". I think the rate credited to funds in the guaranteed interest investment option floats with the interest rate, which they say is expected to be 5% over the long term. I don't know where your 1.5% figure comes from.

I would not interpret the company's first proposed enhancement as applying to the equity investment option.

I think your post is permissible, since it asks how to interpret the assignment, not what I wrote for my solution.

Last edited by Atropellador; 06-21-2010 at 11:38 AM..
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