Actuarial Exams as proof of competence.

[MikeLawrence]

I've heard mixed reviews on Finance's opinion of the Actuarial Exams, what are y'alls thoughts? Some have said it is a turn-off, that actuarial minded people don't break into traditional finance, but then quant isn't traditional finance and these tests can show aptitude with stats (Exam P) and the basic Finance math (Exam FM) plus other areas.

What do you think? Do FE programs view these as good markers of competence? I see more people list the First CFA exam on the tracker and I have yet to see an actuarial one. I should say, for transparency, that I'm taking Exam P in March. The hours of study needed for the CFA exams and the Actuarial exams are both 300 hours (from what I've heard), so difficulty would appear to be around equal.

I would think it is a decent thing to have, shows competence with basic calculus statistics. But I'm not sure how helpful it really is. Curious to know what others think. Additionally, the CFA doesn't have an equivalent of Exam P. I'm surprised I haven't seen any mention of these on this site. At first glance these exams are right up our alley.

There is no Quant community at my school, the closest we have is one or two graduates going into actuarial science every years. There is a business Honors program that I am a part of that traditionally graduates +40% of the Math/Stat majors (maybe not quite as much), but they all go into M&A or non-technical banking. So I've been a part of the actuarial community in lieu of anything else. They like stats, which has been nice. Glad to have found Quantnet.

Also, how far past the material on Exam P is ideal for a top FE program? My school only teaches two courses past that material, and I'll take both, but I'm not sure how much of what the test covers is considered basic and hardly worth mentioning at the level of the top programs.

 

[saveYMS]

Actuarial exams are tough. But they'r not super relevant to FE. Are you still in undergrad? If so, I'd just take general math and programming courses and you should be able to get into a decent MFE/MFin without any problem.

 

[MikeLawrence]

I'm a sophomore, majoring in Finance, Mathematics, Business Fellows, and (possibly major but definitely a minor) Statistics. I'll have a bunch of math/stat courses, and I'll take Quantnet's C++ courses so I'm probably good there. I was just wondering why fewer people seem to take Exam P or C or the actuarial ones to show competence with basic calculus based probability.

Honestly, I understand why they don't. These exams are really annoying to study for. Not sure I want to do another one since I'm not planning to go the actuarial route. I'm hoping to pass Exam P this Saturday. I'll just move into the C++ courses instead.

 

[Andy Nguyen]

@MRoss may be able to answer this.

 

[Jack Yen]

If you're going for actuarial routes, medium benefit.
If not, I would say negative benefit because the exam costs you money and your free time. It also makes the interviewer question your motivation, like why you took actuarial exams but not go for it, instead sitting here interviewing for a different job?

I think getting a A or A+ in quantitative courses at top-tier university is sufficient to prove your competence.

-By a current actuarial professional (with ASA)

 

[MikeLawrence]

If you're going for actuarial routes, medium benefit.
If not, I would say negative benefit because the exam costs you money and your free time. It also makes the interviewer question your motivation, like why you took actuarial exams but not go for it, instead sitting here interviewing for a different job?

I think getting a A or A+ in quantitative courses at top-tier university is sufficient to prove your competence.

-By a current actuarial professional (with ASA)

Thanks for the insight. Like I said, I'm not sure I'd sit for another one.

However, I just finished this one, and preliminary results say I passed. Since you've gone through this, I'd like to know, how often are preliminary results wrong?

Also, there is a group on campus that will pay for my exam fee's and study materials if I pass, so that cost isn't as relevant to me. The free time argument is what is convincing. I didn't find Quantnet until I was already signed up for this exam, I didn't have knowledge of any of the resources on here. Now that I do I'll be putting my time towards the C++ courses and Math Fin books instead of actuarial exams. It does feel good to pass, but it isn't the best use of my free time. But it was fun to do.