Finance & Economics for Actuarial Science
Insurance Institute of India: Fellowship Examination
One of eight actuarial papers for Fellowship. Covers finance and economics principles applied to actuarial science.
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AS-03 exam at a glance
| Level | Fellowship |
|---|---|
| Credit points | 40 |
| Exam | 2 hours, online, multiple choice |
| Pass mark | 60% (75% for distinction) |
Across 16 chapters, every question reviewed and exam-aligned.
Tap a chapter to see what it covers.
1Basics of Financial Management28 questions28
Financial management basics: objectives like wealth maximisation, finance functions, the finance manager's role and agency issues.
2Types of Company and means of financing28 questions28
Business forms from sole proprietorship to company, and raising finance through shares, debentures and loans.
3Financial Instruments28 questions28
Financial instruments: equity, preference shares, debentures, convertibles and warrants, their risk, return and repayment priority.
4Taxation28 questions28
Indian taxation: residential status, heads of income, individual and corporate tax, capital gains and GST basics.
5Leverages - measurement and implications28 questions28
Leverage: operating, financial and combined leverage, how to measure them, and break-even analysis.
6Cost of Capital & Capital Structure28 questions28
Cost of capital: cost of debt and equity, WACC, CAPM, and capital structure theories.
7Introduction to accounts28 questions28
Company accounts: balance sheet, profit and loss statement, cash flow statement, accounting concepts and audit report.
8Interpretation of Accounts28 questions28
Interpreting accounts: profitability, liquidity, leverage and investor ratios, and how ratios help compare companies.
9Capital Budgeting28 questions28
Capital budgeting: appraising long-term projects with payback, NPV, IRR and profitability index.
10Demand and Supply28 questions28
Demand and supply: demand and supply curves, factors affecting them, and market equilibrium price.
11Elasticity of Demand and Supply28 questions28
Elasticity: price, income and cross elasticity of demand, elasticity of supply, and what affects them.
12Theory of Consumer Behaviour28 questions28
Consumer behaviour: human wants, utility and marginal utility, indifference curves and the budget line.
13Types of Competition28 questions28
Market structures: perfect competition, monopolistic competition, oligopoly and monopoly, with revenue concepts, price and output.
14International Trade28 questions28
International trade: comparative advantage, trade restrictions, balance of payments, and fixed versus floating exchange rates.
15Macroeconomics28 questions28
Macroeconomics: GDP and GNP, national income, limits of GDP, types and causes of inflation, and unemployment.
16Government Intervention28 questions28
Government intervention: market failure, externalities, taxes and subsidies, regulation and direct state provision of goods.
Draws from all 448 questions across every chapter, so no two attempts are the same.
AS-03: frequently asked questions
What does AS-03 cover?
AS-03 covers financial management and economics: business finance, financial instruments, taxation, leverage, cost of capital, company accounts and ratios, capital budgeting, micro and macroeconomics and international trade.
Which exam level is AS-03 for?
Fellowship. AS-03 is worth 40 credit points.
What is the pass mark for AS-03?
60%. A score of 75% or more is a pass with distinction.
How long is the AS-03 exam?
2 hours. It is an online exam with multiple choice questions.
When will I know my result?
You see your score right after the online exam. The formal result usually follows within about a month.
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