Frm book 2 questions

Hi,

  1. On the wiley books part 2- page 4 under the learning objective " Evalaute the capital requirements for banks" there is a sentence that says in this scenario a loss of 02.5 would wipe out half the equity capital but the bank would survive. why is this 1/2? it should be 0.25 right?
  2. Also under the learning objective “Describe the key features of the various categories of insurance companies and identify the risks facing insurance companies” there is a sentence that says “whole life insurance”- this is sometimes called permeant insurance…meaning the insurance have a guaranteed payout". What does this mean? Why does this mean it has a guaranteed payout. Page 9 of book 2 of CHristian cooper’s Wiley books.
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  1. Message ChristianHCooper as he wrote the wiley books? I used the 2018 materials, so will not check.

  2. This is an industry terminology thing. Whole life insurance, or whole of life assurance (in the Commonwealth of Nations), sometimes called “straight life” or “ordinary life ,” is a life insurance policy which is guaranteed to remain in force for the insured’s entire lifetime, provided required premiums are paid, or to the maturity date. Contrast this with ‘Term’ Life then you get the idea.

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I did write to christian cooper- a week ago and no response. Im getting pretty frustrated with wiley’s support. sent my queries to their email address 5 days ago and no response. I am already regretting my decision to have gone with wiley. Bit frustrating experience overall.

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Can you post the entire scenario and I will try and help?

Their exam is good/average for the qualitative questions on the exam. I still prepared using the prior 4 years of GARP exams but do note there were a few errors. you can see the differences in questions across years. I passed with Wiley for part 2 and used Schweser for part 1.

I went with Wiley as i was stretched for time after the cfa level 2 exam. maybe try Bionic Turtle questions and stick to Wiley videos.

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