Actuarium

SOA FMFinancial Mathematics

Associateship (ASA)
2.5 hours·30 multiple-choice·250 study hours
Score 0/0 · 10 MC
  1. FM · Q1
    Multiple choice
    General cash flows & portfolios

    A fund begins the year with 100. A deposit of 50 is made at t=0.5t=0.5, immediately after which the fund is valued at 170. The fund value just before the deposit (at t=0.5t=0.5) was 120, and the year-end value is 180. Calculate the time-weighted annual return.

  2. FM · Q2
    Multiple choice
    General cash flows & portfolios

    Using the same fund as above (begin 100, deposit 50 at t=0.5t=0.5, end value 180), calculate the (exact) money-weighted annual return ii solving 100(1+i)+50(1+i)0.5=180100(1+i)+50(1+i)^{0.5}=180.

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