This has been built up from the outline of learning objectives for Course 6 Spring 2004 from the SOA website. As people make comments, indicate which readings or previous exam problems are relevant, find supporting readings, or make Rebel Outpost discussions, I will link underneath the appropriate item.

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Learning Objectives
The candidate is expected to be able to perform the following actions:
  1. Identify and evaluate the risk and return characteristics of various types of investments.

  2. Identify how markets operate and explain the fundamental principles of modern portfolio theory.

  3. Determine how options are priced in financial markets.

    Example annotation: Prof. Bob Kohn at NYU's Class Notes on Derivative Securities(I took a version of this class a few years ago... there are several separate files, so I will review them again to see which ones are of interest) show the derivations of Black-Scholes and binomial tree pricing.

  4. Determine the value of cash flow streams with embedded options.

  5. Apply the concepts of interest rate risk management and effective duration.

  6. Explain how principles of asset liability management (ALM) impact portfolio construction and management for institutional investors.

  7. Identify and apply portfolio management techniques to the ongoing investment management of financial institution and pension fund assets.

Mary Pat Campbell, last updated Jan 14, 2004