SOA Exam 6

Section B

Questions

by Cynic

  1. What's the difference between short selling and buying on margin?

  2. What is the efficient frontier and how is it identified?

  3. What are the assumptions used in the CAPM (Capital Asset Pricing Model)

  4. What are the 3 forms of the Efficiency Market Hypothesis?

  5. What are some market anomalies (that contradict the Efficiency Market Hypothesis)?

  6. What are bond features that affect interest rate risk?

  7. What's the difference between modified duration and effective duration?

  8. What are the factors that affect risk premium?

  9. What are the theories that explain the shapes of the yield curve?

  10. Define spot rate, forward rate, short rate, and YTM (Yield-To-Maturity).

  11. Compare CAPM and APT (Arbitrage Pricing Theory) Model.

  12. What are the advantages/disadvantages of using index models?

  13. What are the advantages/disadvantages of international investing?

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