Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CA1 Final Revision > deck_47571 > Flashcards

deck_47571 Flashcards

1
Q

Final Anagrams

4 aims of regulation

A

CRIPConfidence to financial systemReduce financial crimeInefficiency correctionProtection of customers of financial products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Final Anagrams

What are the 5 types of regulatory regime?

A

SS VUMSelf regStatutoryVoluntary cocUnregulatedMixed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Final Anagrams

Explain an Ivestment trust in 3 points (shares or units, closed ended or open, buy/sell from investor or manager)

A

S,CE,Inv, discount to NAV, company law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Final Anagrams

Explain an unit trust in 3 points (shares or units, closed ended or open, buy/sell from investor or manager)

A

U,oe,man, equal to NAV, trust law, bid/offer spread

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Final Anagrams

Explain an OEIC in 3 points (shares or units, closed ended or open, buy/sell from investor or manager)

A

S, oe, man, company law, lower charges, 1 buy/sell price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Final Anagrams

What is the formula for the real WACC?

A

debt/(debt+eq)Gross cost of debt(1-t) + equity/(debt+equity)*cost of equityFractions reflected optimal capital structureGCoD=return on IL bonds+Corp Bond RPCoE=return on IL bonds+ERPt=assumed corporation tax rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Final Anagrams

What are the assumptions underlying the discounted dividend model?

A

D, an annual dividend first paid at time 1i, constant effective annual required rate of returng, constant effective annual rate of divdiend growthi>gi, g both real or both nominaltaxes and expenses ignoredDividends are reinvested at rate iShare held in perpetuity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Final Anagrams

4 Factors effecting demand for assets

A

PIA-RRRRRRRRRRPreferencesIncomeAlternativesRisk/Return

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Final Anagrams

Why prefer a lower yield?

A

TIMETaxInvestments deal less frequently, so less costMatchingExpected returns higher, longer DMT

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Final Anagrams

Problems with immunisation

A

Fixed liabilitiesSmall profitsFlat yield curveConstant rebalancingTaxes/dealing costs ignoredSuitable assets may not existIf timings of cashflows are unknown we can’t do it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Final Anagrams

Why might past data be useless?

A

BEACHESBalance of homogeneous groups changedExperience changesAbnormal fluctuationsChanges in how data was recordedHeterogeneity in group we’re applying assumptions toErrors in the dataStatistically random fluctuations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Final Anagrams

6 methods of financing a benefit scheme?

A

PAST JUGULARPAYGSmoother PAYGTerminalJust in timeReGULARLums sum in advance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Final Anagrams

How do you appraise a financing method?

A

DR FLOSSDurabilityRealismFlexibilityLiquidtyOpportunity costStabilitySecurity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Final Anagrams

Reasons to calculate liabilities

A

IP MAD DOGSInvestment strategyPremium settingMandA’sAccounts (published and internal)Discretionary beenfits Discontinuance benefitsOption termsGtee costsStatury valn

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Final Anagrams

What are the sources of surplus?

A

CAMBODIAChanges in assumptions/legislationA reclaculationModified conribution rateBulk transfer of liabilitiesOptions taken upDiscretionary benefitsInterest on surplusActual not equal to expectedErrors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Final Anagrams

What 3 things must you have to be insurable

A

P/h has interest in the riskFinancial and quantifiable natureAmount paid by insurer relates to the financial loss incurred

17
Q

Final Anagrams

What 6 other things would you like in an insurable risk

A

MUDPISMoral hazard avoidedUltimate limit to liabilityData to price the riskPooling of similar risksIndependant risk eventsSmall probability of occuring

18
Q

Final Anagrams

What are the risk managemnt tools?

A

MURDAManagement and control systemsUnderwriting and claims controlReinsuranceDiversificationART

19
Q

Final Anagrams

What management control systems are there?

A

Special DAMSData checksAccounting/auditMonitor liabilitiesSpecial care on Options/Gtees

20
Q

Final Anagrams

3 types of underwriting

A

MILFMedicalLifestyleFinancial

21
Q

Final Anagrams

4 possible stages of underwriting?

A

Proposal formDr reportMedical examSpecilist tests

22
Q

Final Anagrams

4 types of claims control

A

CLEOClaim formLoss adjustEstimatesOngoing checks

23
Q

Final Anagrams

3 headings of reinsurance, split first into 2, second into 4 and the last explain

A

Proportional, NP, FinancialProportional:Quota shareSurplusNPRisk XLAgg XLCAT XL Stop lossFinancial - reinsurance to improve solvency position, regulatory arbing

24
Q

Final Anagrams

Reasons to reinsure

A

SAD LIFESmoothingAvoid large lossesDiversifyLimit exposure to single risks/accumulationsIncrease NB capictiyFinancial assistance (NB, solv)Expertise e.g. data/pricing

25
Q

Final Anagrams

Types of ART

A

DIPSISDisc coverIntegrated risk coverPost loss fundingSecuritisationInsurance derivSwaps

CA1 Final Revision (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions