Table Of ContentCT2 – P C – 13
Combined Materials Pack
ActEd Study Materials: 2013 Examinations
Subject CT2
Contents
Study Guide for the 2013 exams
Course Notes
Question and Answer Bank
Series X Assignments*
*Note: The Series X Assignment Solutions should also be supplied
with this pack unless you chose not to receive them with your study material.
If you think that any pages are missing from this pack, please contact ActEd’s admin team
by email at [email protected].
How to use the Combined Materials Pack
Guidance on how and when to use the Combined Materials Pack is set out
in the Study Guide for the 2013 exams.
Important: Copyright Agreement
This study material is copyright and is sold for the exclusive use of the purchaser. You
may not hire out, lend, give out, sell, store or transmit electronically or photocopy any
part of it. You must take care of your material to ensure that it is not used or
copied by anybody else. By opening this pack you agree to these conditions.
The Actuarial Education Company © IFE: 2013 Examinations
All study material produced by ActEd is copyright and is sold
for the exclusive use of the purchaser. The copyright is owned
by Institute and Faculty Education Limited, a subsidiary of
the Institute and Faculty of Actuaries.
Unless prior authority is granted by ActEd, you may not hire
out, lend, give out, sell, store or transmit electronically or
photocopy any part of the study material.
You must take care of your study material to ensure that it is
not used or copied by anybody else.
Legal action will be taken if these terms are infringed. In
addition, we may seek to take disciplinary action through the
profession or through your employer.
These conditions remain in force after you have finished using
the course.
© IFE: 2013 Examinations The Actuarial Education Company
CT2: Study Guide Page 1
2013 Study Guide
Subject CT2
Introduction
This Study Guide contains all the information that you will need before starting to study
Subject CT2 for the 2013 exams. Please read this Study Guide carefully before
reading the Course Notes, even if you have studied for some actuarial exams before.
When studying for the UK actuarial exams, you will need a copy of the Formulae and
Tables for Examinations of the Faculty of Actuaries and the Institute of Actuaries,
2nd Edition (2002). These are often referred to as simply the yellow Tables and are
available separately from the Publications shop of the Actuarial Profession. You will
also need a ‘permitted’ scientific calculator from the list published by the Profession.
Please check the list carefully since it is reviewed each year. You will find the list of
permitted calculators and a link to the Publications shop in the profession’s website at
www.actuaries.org.uk.
Contents:
Section 1 The Subject CT2 course structure Page 2
Section 2 ActEd study support Page 3
Section 3 Core Reading, the Syllabus and the Profession Page 11
Section 4 Study skills Page 14
Section 5 Frequently asked questions Page 18
Section 6 Syllabus Page 19
Section 7 Assignment deadlines Page 25
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Page 2 CT2: Study Guide
1 The Subject CT2 course structure
There are four parts to the Subject CT2 course. This should help you plan your progress
across the study session. The parts cover related topics and have broadly equal lengths.
The parts are broken down into chapters.
The following table shows how the parts, the chapters and the syllabus items relate to
each other. The end columns show how the chapters relate to the days of the regular
tutorials.
No of Syllabus Half 2 full 3 full
Part Chapter Title
pages objectives day days days
1 The key principles of finance 27 (ii)
2 Company ownership 38 (iii)
3 Taxation 21 (iv)
1
1 4 Financial instruments 44 (iii), (iv), (v)
1
5 Use of derivatives 21 (v)
6 Issue of shares 38 (v) 1
7 Introduction to accounts 34 (ix)
8 The main accounts 42 (ix)
2 2
9 Depreciation and reserves 19 (ix)
10 Generating accounts 22 (ix)
11 Group accounts and insurance company 25 (ix)
2
accounts
3 12 Interpretation of accounts 54 (x) 3
13 Limitations of accounts 17 (x)
2
14 Financial institutions 46 (viii)
15 Weighted average cost of capital 42 (vii), (xi)
16 Capital structure and dividend policy 40 (vi)
3
4 17 Capital project appraisal (1) 39 (vii), (xi) 4
18 Capital project appraisal (2) 47 (vii), (xi)
19 Glossary 25 (i)
© IFE: 2013 Examinations The Actuarial Education Company
CT2: Study Guide Page 3
2 ActEd study support
This section lists the study support available from ActEd for Subject CT2.
Course Notes
The Course Notes will help you develop the basic knowledge and understanding of
principles needed to pass the exam. They incorporate the complete Core Reading and
include full explanation of all the syllabus objectives, with worked examples and short
questions to test your understanding.
Each chapter includes the relevant syllabus objectives, a chapter summary and, where
appropriate, a page of important formulae or definitions.
Question and Answer Bank
The Question and Answer Bank provides a comprehensive bank of questions (including
some past exam questions) with full solutions and comments.
The Question and Answer Bank is divided into five parts. The first four parts include a
range of short and long questions to test your understanding of the corresponding part of
the Course Notes. Part five consists of 100 marks of exam-style questions.
Assignments
The four Series X Assignments (X1 to X4) cover the material in Parts 1 to 4
respectively. Assignments X1 and X2 are 80-mark tests and should take you two and a
half hours to complete. Assignments X3 and X4 are 100-mark tests and should take
you three hours to complete. The actual Subject CT2 examination will have a total of
100 marks.
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Combined Materials Pack (CMP)
The Combined Materials Pack (CMP) comprises the Course Notes, the Question and
Answer Bank and the Series X Assignments.
The CMP is available in eBook format, enabling it to be downloaded in a rights-
protected PDF format and read on your PC, laptop and ipad (but NOT currently on
Kindles). CMP eBooks can be ordered separately or as an addition to a paper CMP.
Visit www.ActEd.co.uk for more details about compatibility, printing restrictions and
software requirements.
Mock Exam
A 100-mark mock exam paper (Mock Exam A) is available for students as a realistic
test of their exam preparation. The mock is based on Mock Exam A from last year but
it has been updated to reflect any changes to the Syllabus and Core Reading.
Additional Mock Pack (AMP)
The Additional Mock Pack (AMP) consists of two further 100-mark mock exam papers
– Mock Exam B and Mock Exam C. This is ideal for students who are retaking and
have already sat Mock Exam A, or for those who just want some extra question
practice. If you are retaking this subject you should note that the mock exams in the
AMP use many questions from Mock Exam B for the 2011 exams and the
Y Assignments for the 2011 exams. Therefore, if you purchased Mock Exam B or the
Y Assignments that year you may wish not to purchase the AMP as many of the
questions will be duplicated.
ActEd Solutions with Exam Technique (ASET)
The ActEd Solutions with Exam Technique (ASET) contains ActEd’s solutions to the
previous four years’ exam papers, ie eight papers, plus comment and explanation. In
particular it will highlight how questions might have been analysed and interpreted so as
to produce a good solution with a wide range of relevant points. This will be valuable
in approaching questions in subsequent examinations.
A “Mini-ASET” will also be available in the summer session covering the April Exam
only.
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CT2: Study Guide Page 5
CMP Upgrade
The CMP Upgrade lists all significant changes to the Core Reading and ActEd material
so that you can manually amend last year’s study material to make it suitable for study
for this year. The Upgrade includes replacement pages and additional pages where
appropriate. If a large proportion of the material has changed significantly, making it
inappropriate to include all changes, the upgrade will still explain what has changed and
if necessary recommend that students purchase a replacement CMP or Course Notes at a
significantly reduced price. The CMP Upgrade can be downloaded free of charge from
our website at www.acted.co.uk.
Smart Revise
Smart Revise is an e-learning product containing over 300 questions to help you with
your revision. You can either download the program to use it off-line on your PC or use
the program on-line. Visit our website at www.acted.co.uk for information on how to
access and register for Smart Revise. You can try a demonstration version of the
software for free before registering. Registration runs for one exam session and will
automatically expire after the exam. If you wish to re-use Smart Revise for the
following session an additional fee will be payable.
Sound Revision
It is reported that only 30% of information that is read is retained but this rises to 50% if
the information is also heard.
Sound Revision is a set of audio CDs, designed to help you remember the most
important aspects of the Core Reading. There are three CDs for Subject CT2.
The CDs cover the majority of the course, split into a number of manageable topics
based on the chapters in the Course Notes. Each section lasts no longer than a few
minutes so it’s perfect for the train, tube, or car journey on the way to work, or where
taking folders and course notes is not practical.
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Revision Notes
ActEd’s Revision Notes have been designed with input from students to help you revise
efficiently. They are suitable for first-time sitters who have worked through the ActEd
Course Notes or for retakers (who should find them much more useful and challenging
than simply reading through the course again). The Revision Notes are a set of six A5
spiral-bound booklets – perfect for revising on the train or tube to work. Each booklet
covers one main theme of the course and includes Core Reading (with a set of
integrated short questions to develop your bookwork knowledge), relevant past exam
questions (with concise solutions) from the last ten years, detailed analysis of key past
exam questions and other useful revision aids.
Flashcards
Flashcards are a set of A6-sized cards that cover the key points of the subject that most
students want to commit to memory. Each flashcard has questions on one side and the
answers on the reverse. We recommend that you use the cards actively and test yourself
as you go.
Flashcards may be used to complement your other study and revision materials. They
are not a substitute for question practice but they should help you learn the essential
material required.
Flashcards are available in eBook format, enabling them to be downloaded in a rights-
protected PDF format and read on your PC, laptop, ipad and many smart phones (but
NOT currently on Kindles). Flashcard eBooks can be ordered separately or as an
addition to a paper copy. Visit www.ActEd.co.uk for more details about compatibility,
printing restrictions and software requirements.
Marking
We are happy to mark your attempts at any of the currently available assignments, Mock
Exam A or the mock exams included within AMP. Marking is not included with the
products themselves and you need to order it separately. You can submit your scripts by
email, fax or post.
Series Marking and Mock Exam marking
Series Marking (for the Series X Assignments) and Mock Exam Marking (for Mock
Exam A) apply to a specified subject, session and student. If you purchase Series
Marking or Mock Exam Marking, you will not be able to defer the marking to a future
exam sitting or transfer it to a different subject or student.
© IFE: 2013 Examinations The Actuarial Education Company
CT2: Study Guide Page 7
If you order marking at the same time as you order the assignments or mock exam, you
can choose whether or not to receive a copy of the solutions in advance. If you choose
not to receive the solutions in advance, we will send the solutions to you when we
return your marked script (or following the deadline date if you don’t submit).
If you are having your attempts at the assignments marked by ActEd, you should submit
your scripts regularly throughout the session, in accordance with the schedule of
recommended dates set out in the summary at the end of this document. This will help
you to pace your study throughout the session and leave an adequate amount of time for
revision and question practice.
Any script submitted after the relevant final deadline date will not be marked. It is
your responsibility to ensure that scripts are posted in good time.
Important information
The recommended submission dates are realistic targets for the majority of students.
Your scripts will be returned more quickly if you submit them well before the final
deadline dates.
Marking Vouchers
Marking Vouchers give the holder the right to submit a script for marking at any time,
irrespective of the individual assignment deadlines, study session, subject or person.
Marking Vouchers can be used for any assignment, Mock Exam A, or the mock exams
contained within the AMP. Please note that attempts at the AMP can only be marked
using Marking Vouchers.
Marking Vouchers are valid for four years from the date of purchase and can be refunded
at any time up to the expiry date.
Important information
Although you may submit your script with a Marking Voucher at any time, you will need
to adhere to the explicit Marking Voucher deadline dates to ensure that your script is
returned before the date of the exam. The deadline dates are given at the end of this study
guide.
If you live outside the UK you must ensure that your last script reaches the ActEd office
earlier than this to allow the extra time needed to return your marked script.
The Actuarial Education Company © IFE: 2013 Examinations
Page 8 CT2: Study Guide
Tutorials
ActEd tutorials are specifically designed to develop the knowledge that you will acquire
from the course material into the higher level understanding that is needed to pass the
exam. We expect you to have read the relevant part of the Course Notes before
attending the tutorial so that the group can spend time on exam questions and discussion
to develop understanding rather than basic bookwork.
ActEd run a range of different tutorials at various locations. Full details are set out in
ActEd’s Tuition Bulletin, which is sent regularly to all students based in the UK, Eire
and South Africa and is also available from the ActEd website at www.acted.co.uk.
Regular and Block Tutorials
You can choose one of the following types of tutorial:
Regular Tutorials (usually two or three days) spread over the session.
A Block Tutorial (two or three days) held 2 to 8 weeks before the exam.
The Regular Tutorials provide an even progression through the course. Block Tutorials
cover the whole course.
Revision Days
Revision Days are intensive one-day tutorials in the final run-up to the exam. They are
particularly suitable for first-time sitters who attended Regular Tutorials and would like
to spend a day close to the exam focusing on further question practice or retakers who
have already attended ActEd tutorials. Revision Days give you the opportunity to
practise interpreting and answering past exam questions and to raise any outstanding
queries with an ActEd tutor. These courses are most suitable if you have previously
attended Regular Tutorials or a Block Tutorial in the same subject.
Details of how to apply for ActEd’s tutorials are set out in our Tuition Bulletin, which is
sent regularly to all students based in the UK, Eire and South Africa and is also
available from the ActEd website at www.acted.co.uk.
© IFE: 2013 Examinations The Actuarial Education Company
