please please!!

1 An investment manager manages a US equity fund and he has been asked to allocate

the constituents of the S&P 500 index into growth and value stocks.

(i) Describe active management styles in relation to US equities. [5]

(ii) (a) Describe how you would allocate the companies into growth and value.

(b) Discuss the problems that you might encounter.

[5]

(iii) Suggest the circumstances in which a passive management style might be

more attractive to investors.

2 The managers of a defined benefit pension scheme are reviewing the terms they offer

to members who opt to transfer their benefits out of the scheme.

(i) Set out the principles involved in calculating individual transfer values. [3]

A scheme member has just received a transfer value quotation.

(ii) Outline the reasons why the member may decide to take the transfer value. [3]

(iii) Outline the risks the member should consider before taking the transfer value.

3

For a portfolio of insurance policies, claims X, are independent and follow a gamma distribution, with parameters a 6 and , which is unknown. A random sample of n claims, X...., X, is selected, with mean X. (i) Derive an expression for the estimator of using the method of moments. [2] (ii) Explain what the Maximum Likelihood Estimator (MLE) of represents. [2] (iii) Derive an expression for the MLE of , commenting on the result. (iv) State the Moment Generating Function (MGF) of X. Let Y = 2nX. [5] [1] E (v) Derive the MGF of Y, and hence its distribution, including statement of parameters. [5] [Total 16