Materials for Study, 2010 Exam 8
© 2009, Casualty Actuarial Society, All Rights Reserved
Investments and Financial Analysis
Before commencing study for this four-hour examination, candidates should read the “Introduction” to
“Materials for Study” for important information about learning objectives, knowledge statements,
readings, and the range of weights. Items marked with a bold
constitute the 2010 CAS Exam 8 Study
Kit that may be purchased from the CAS Online Store. Items marked with a bold
—the 2010 CAS
Exam 8 Web Notes—are available at no charge in the “Study Tools” section of the CAS Web Site or
may be purchased from the CAS Online Store.
Please check the “
Updates” section of the CAS Web Site for any changes to the
The CAS will test the candidate’s knowledge of topics that are presented in the learning objectives.
Thus, the candidate should expect that each exam will cover many of the learning objectives and
associated knowledge statements and syllabus readings, and that all of these will be tested at least once
over the course of a few years—but each one may not be covered on a particular exam.
Exam 8 focuses on a broad array of finance, investment, and financial risk management topics. The
exam can be viewed as having two parts, with Sections A-E covering mostly financial theory and tools
and Sections F-H covering various financial applications. The material in Exam 8 presupposes and
builds upon introductory knowledge of finance. It also presupposes knowledge of probability and
statistical modeling, liability and reserve risk and insurance underwriting.
There are two main texts:
(2009) by Bodie, Kane, and Marcus and
Options, Futures and
(2009) by Hull. In addition, one chapter from
The Handbook of Fixed Income
(2005) edited by Fabozzi is included. For those candidates wishing to gain a broader exposure
to fixed income securities, Fabozzi has a wealth of additional material, although this additional material
is not part of the learning objectives.
(Bodie, Kane, and Marcus) text contains references to various Web sites. Candidates are
not responsible for the identity of the Web sites, or the actual content of the Web sites, except to the
extent the content is reproduced in the text. Candidates are also not responsible for any aspect of the
Excel applications or the boxes entitled “E-Investments” that are usually placed at or towards the end of
While, in general, it is suggested that the candidate cover the learning objectives in the order listed, some
references to later chapters in texts may occur before references to earlier chapters. In these cases, the
candidate may need to review these earlier chapters first and then return to the learning objectives that
reference the later chapters.
For Exam 8, the appendices are part of the material covered by the exam unless specifically excluded.