Exam IFM Study Manual - Learning Made Easier

Sep 27, 2026

Uploaded by Angel

Exam IFM Study Manual presents a guided preparation program for the IFM actuarial exam, integrating Corporate Finance and Derivative Instruments. It details the full syllabus topics and learning structure, including investment risk, efficient markets, mean-variance portfolio theory, CAPM, capital structure, financing, forwards and futures, and options—covering both general and exotic option pricing. The manual includes extensive practice, adaptive quizzes, multiple learning and difficulty modes, and video instruction, plus progress tracking through an online learning tool. It also explains study guidance, quizzes, exercises, and how to interpret interest-rate conventions across the two subject areas.

LanguageEnglish

CategoryExam

FormatPDF

Pages18

Reading Time45 min

AccessFree to download

Preface

IFM Course Overview

Investment Risk and Project Analysis

Efficient Markets and Portfolio Theory

CAPM and Capital Structure

Financing and Derivatives

Options and Pricing Principles

Binomial Trees and Lognormal Model

Black-Scholes and Exotic Options

Real Options and Actuarial Applications

IFM Exam Format and Syllabus Weights

An Integrated Component of Your Study Manual Program Exam IFM Study Manual Abraham Weishaus, Ph.D., FSA, CFA, MAAA Learning Made Easier OAL Guided Online Actuarial Learning Included free with your study manual purchase. Start your preparations today! Adaptable, customizable, online actuarial exam prep tool. • 10,000+ exam style problems with detailed solutions • Hours of instructional videos covering exam syllabus topics (selection varies by exam) • Adaptive quizzes • 3 learning modes & 3 difficulty modes • Practice. Quiz. Test. Pass! See Reverse Side for an Outline of the GOAL Test Prep Tool Included free with purchase of this study manual Didn’t purchase a new copy of this manual? Check out our free one-day trial of GOAL [Available at www.ActexMadRiver.com & www.ActuarialBookstore.com](Available at www.ActexMadRiver.com & www.ActuarialBookstore.com) Adaptable, customizable, online actuarial exam prep tool. • 10,000+ exam style problems with detailed solutions • Adaptive quizzes • 3 learning modes • 3 difficulty modes • Practice. Quiz. Test. Pass! Free with your ACTEXor ASM Study Manual • GOAL is an e-Learning test prep tool for students to practice skills learned in class or from independent study • The online platform offers a database of SOA & CAS exam-style problems with detailed solutions • GOAL offers instructor support as well as performance reporting and tracking to monitor your progress • Don’t forget to check out GOAL Score to see how ready you are for the exam Available now for P, FM, IFM, LTAM, STAM, SRM, MAS-I, MAS-II, CAS 5, CAS 6U, & CAS 6C Start Your Exam Prep Today! Preface Welcome to the IFM exam! This course combines Corporate Finance and Derivative Instruments. You will study the following topics: 1. Investment risk and project analysis 2. Efficient markets hypothesis 3. Mean-variance portfolio theory 4. Capital asset pricing model (CAPM) 5. Capital structure 6. Debt and equity financing 7. Forwards and futures 8. Call and put options 9. Strategies combining call and put options 10. Principles relating prices of calls and puts, and relating prices of options to each other and bounding them. These principles do not develop exact prices for options, but are general and easy to derive. 11. Valuing options using binomial trees. 12. The lognormal model for stocks. 13. Valuing options using analytic methods (Black-Scholes) . 14. Definitions of exotic options, and pricing methods for exotic options where available. 15. Real options 16. Actuarial applications of option pricing The IFM exam is a 3-hour exam with 30 questions. The following table gives the syllabus topics and their weights, and the lessons discussing each topic | Topic | Weight | Lessons | | --- | --- | --- | | Mean-Variance Portfolio Theory | 10–15% | 5 | | Asset Pricing Models | 5–10% | 6–8 | | Market Efficiency and Behavioral Finance | 5–10% | 4,8 | | Investment Risk and Project Analysis | 10–15% | 2–3,30 | | Capital Structure | 10% | 9–13 | | Introductory Derivatives—Forwards and Futures | 5–10% | 1,14–15 | | General Properties of Options | 10–15% | 16–18 | | Binomial Pricing Models | 10% | 19–22 | | Black-Scholes Option Pricing Model | 10–15% | 23–24,27 | | Option Greeks and Risk Management | 5–10% | 25,26,31 | The syllabus includes parts of two textbooks, and two study notes. Download the syllabus from the SOA site and refer to the last page of the syllabus for links to the two study notes. One textbook and one study note deal with Corporate Finance. The other textbook and study note deal with Derivative Instruments. If you use the Derivatives Markets textbook, refer to the following website for errata: [http://derivatives.kellogg.northwestern.edu/errata/errata3e.html](http://derivatives.kellogg.northwestern.edu/errata/errata3e.html) IFM Study Manual xvii Copyright © ASM This manual This manual gives you complete coverage of

FAQs

What topics are covered in the IFM study manual?

The manual covers Corporate Finance and Derivative Instruments, including investment risk, efficient markets, mean-variance portfolio theory, CAPM, capital structure, financing, forwards/futures, and a full range of options topics from general properties to exotic options and real options.

How long is the IFM exam and how many questions are there?

The IFM exam is a 3-hour exam with 30 questions.

How should interest rates be interpreted across the two subject areas?

In the corporate finance part, assume annual effective interest rates unless told otherwise; in the derivatives part, assume continuously compounded interest rates unless told otherwise, so exams reflect clear definitions.

Sep 27, 2026

Uploaded by Angel

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