Sponsored Ads
Pauline Reimer, ASA, MAAA
Pryor Associates
Actuarial Openings: Life, P&C, Health, Pensions, Finance
Ezra Penland Actuarial Recruiters
Top Actuary Jobs
Salary Surveys Apply Bios Casualty Health Life Pension

Page 1 of 2 12 LastLast
Results 1 to 10 of 14

Thread: Is FM easier than P?

  1. #1
    Actuary.com - Level II Poster
    Join Date
    Aug 2008
    Location
    NY
    Posts
    80

    Is FM easier than P?

    I heard from somewhere (dont remember where right now) that Exam FM is easier than Exam P. Is this true? Anybody who has taken FM before?:skeptical:

  2. #2
    Actuary.com - Level I Poster jonny's Avatar
    Join Date
    May 2008
    Location
    CA
    Posts
    28
    I'm just starting to study for FM, but from what I've gathered so far, the FM syllabus does not look as expansive and overwhelming as the P syllabus. FM looks a little more focused on a particular topic, whereas P was much more all over the place.

    So with that said, I think that FM will be easier...at least that's what I'm hoping. I had a heck of a time getting past P

    Good luck in your studies.

  3. #3
    Actuary.com - Level III Poster
    Join Date
    Aug 2007
    Location
    Fl
    Posts
    103
    Quote Originally Posted by kubila View Post
    I heard from somewhere (dont remember where right now) that Exam FM is easier than Exam P. Is this true? Anybody who has taken FM before?:skeptical:
    The short answer yes. For P the problem solving and trickyness of the exam is harder than FM. Many students who I am taking an FM course with heard that FM was very easy and as a result are struglling with the material because they took it lightly. The whole thing with FM is you must master the concepts of time value of money(present value, future value) and annuities and equations of value, conceptually these are the most difficult part of the exam, you must not memorize but understand these concepts and visualize whats going on in a fund . I spent a decent amount of time on these concepts and one day it just all clicked as soon as that happened the entire course becomes rediculously easy. After that its just repitition and some formula memorizing. I spent 70 hrs over the summer studying FM and covered 80% of the material.

  4. #4
    Actuary.com - Level II Poster
    Join Date
    Aug 2008
    Location
    NY
    Posts
    80
    Got it. Thank you both. I think i'll take it as seriously as the P.

  5. #5
    Actuary.com - Level VI Poster jthias's Avatar
    Join Date
    Dec 2005
    Location
    WA
    Posts
    858
    Quote Originally Posted by kubila View Post
    I heard from somewhere (dont remember where right now) that Exam FM is easier than Exam P. Is this true? Anybody who has taken FM before?:skeptical:
    I'll let you know in a month which is easier

    Kidding aside, most that have taken both have said FM is easier.
    "Play the game, Harding. Just play the game." - One Flew Over the Cuckoo's Nest

  6. #6
    Actuary.com - Level III Poster (/iropracy's Avatar
    Join Date
    May 2008
    Posts
    148
    I haven't taken it yet, but through practicing it seems easier.

    In my opinion, FM is more about knowing the trick, or the procedure right away. Exam P was all about being quick and accurate with calculus. FM is all about being tricky with your algebra and maximizing the CF and TVM worksheets to their fullest.

    Also in FM, it seems I always have some formula to start with, rather than constructing an integral, a pdf, mgf, or whatever else like in P.
    (/

  7. #7
    Actuary.com - Level VI Poster jthias's Avatar
    Join Date
    Dec 2005
    Location
    WA
    Posts
    858
    Quote Originally Posted by (/iropracy View Post
    I haven't taken it yet, but through practicing it seems easier.

    In my opinion, FM is more about knowing the trick, or the procedure right away. Exam P was all about being quick and accurate with calculus. FM is all about being tricky with your algebra and maximizing the CF and TVM worksheets to their fullest.

    Also in FM, it seems I always have some formula to start with, rather than constructing an integral, a pdf, mgf, or whatever else like in P.
    I know the TVM keys well. I was just curious how useful you find (or anyone else in this forum) the other feature that you mentioned like CF, IRR and interest rate conversions keys? Most of the examples and solutions involving the BAII in the ASM rely on TVM keys, so I really haven't given the other features much consideration or usage. Are the others as worth learning as the TVM keys in terms of cutting down on calculation times?
    Last edited by jthias; October 2nd 2008 at 02:15 AM.
    "Play the game, Harding. Just play the game." - One Flew Over the Cuckoo's Nest

  8. #8
    Actuary.com - Level III Poster (/iropracy's Avatar
    Join Date
    May 2008
    Posts
    148
    Quote Originally Posted by jthias View Post
    I know the TVM keys well. I was just curious how useful you find (or anyone else in this forum) the other feature that you mentioned like CF, IRR and interest rate conversions keys? Most of the examples and solutions involving the BAII in the ASM rely on TVM keys, so I really haven't given the other features much consideration or usage. Are the others as worth learning as the TVM keys in terms of cutting down on calculation times?
    Oh so you don't know how you can solve basically any polynomial with the CF worksheet?

    Try this:

    Say you are trying to solve 1-v-v^10=0

    Go to the cash flow worksheet and put in the following:

    C0=1
    C1=-1
    F1=1
    C2=0
    F2=9 (the time between cash flow one and cash flow 10)
    C3=-1
    F3=1

    Hit IRR and then CPT. What you get is an answer for i. That was an easy one. Here is another example.

    20(1+i/4)^28-10(1+i/4)^20-10(1+i/4)^16-5=0

    We can either put the cash flows in directly or multiply through by v^28. Just put them in directly.

    C0=20 (Cash flow at t=0 accumulates the longest.)
    C1=0
    F1=7 (28-(20+1), the time between cash flow 0 and 1)
    C2=-10
    F2=1
    C3=0
    F3=3
    C4=-10
    F4=1
    C5=0
    F5=15
    C6=-5
    F6=1

    IRR --> CPT = 1.7103%

    What we solved for here was i/4. Then i = 4* 1.7103% = 6.8411% (This is the nominal convertible quarterly)

    This comes in handy a lot of ways. Note that if you get IRR=0, then you need to solve it some other way. This happens now and again.

    Let's say you have the polynomial 3x^2+2x-1=0. You treat x as v.

    C0=-1
    C1=2
    F1=1
    C2=3
    F2=1

    CPT IRR = 200 remember this is i.

    If we want x we have the identity x=1/(1+i). Since i = 200%, x= 1/3. We can find a root for basically any degree polynomial.

    Hope that sheds some light.
    (/

  9. #9
    Actuary.com - Level V Poster djerry81's Avatar
    Join Date
    May 2006
    Location
    atlanta, ga
    Posts
    630
    It seems to me FM is harder because I never learned this stuff and the tricks on the problems don't come naturally to me. I'm struggling now and I am using ASM and TIA. I'm not sure if the problems are just ridiculously hard or I am just unprepared. The simple ones using the calculator I have no problem doing, the ones that require some series expansion or turning payments into series I am struggling with. Lets not talk about derivatives or amort

  10. #10
    Actuary.com - Level IV Poster
    Join Date
    Jan 2008
    Location
    MI
    Posts
    467
    I found FM/2 harder than P/1 and got a lower passing grade. Each person has a different style, but I read a poll somewhere on this site in which the majority feel P/1 is harder so I'm in the minority here.

    Also it depends on your background. I had plenty of calculus and statistics background, but no finance. So present value was very alien to me and took a while to absorb.

    P/1 problems more interesting to me also, and rewarded attention even when they were tough. FM/2 is kind of dry.

Page 1 of 2 12 LastLast

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. which test is more easier to start P1 or FM?
    By jk086027 in forum Actuarial - General Discussion
    Replies: 2
    Last Post: January 6th 2008, 05:22 AM
  2. When Do You Use Convolution and when is it the easier method...how do you know????
    By Tara in Chicago in forum SOA Exam P / CAS Exam 1 - Probability - with practice exam problems
    Replies: 30
    Last Post: November 16th 2007, 02:21 AM
  3. Is a Master degree in Act Sci easier to find a job in US?
    By tonnytse in forum Actuarial - General Discussion
    Replies: 4
    Last Post: September 6th 2007, 06:19 PM
  4. Comprehensive Tests easier than the actual test?
    By powerapple in forum SOA Exam P / CAS Exam 1 - Probability - with practice exam problems
    Replies: 0
    Last Post: November 15th 2006, 12:36 PM
  5. Is Fm Exam Gonna Be Harder Or Easier Starting 2007
    By nastykae in forum SOA Exam FM / CAS Exam 2 - Financial Mathematics - with practice exam problems
    Replies: 4
    Last Post: July 18th 2006, 07:43 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •