Introduction
The Society of Actuaries (SOA) offers a series of exams that aspiring actuaries must pass to earn their credential. Two of the first exams that candidates typically take are Exam P and Exam FM. Both exams are challenging, but they cover different material. So, which one should you take first?
What is Exam P?
Exam P is the Probability exam. It covers the following topics:
- Univariate probability distributions
- Multivariate probability distributions
- Conditional probability
- Bayes’ theorem
- Random variables
What is Exam FM?
Exam FM is the Financial Mathematics exam. It covers the following topics:
- Time value of money
- Annuities
- Loans
- Bonds
- Derivatives
Which Exam Should You Take First?
There is no right or wrong answer to the question of which exam to take first. However, there are a few factors to consider that can help you make the best decision for your individual situation.
- Your strengths and weaknesses. If you are strong in math and probability, you may want to take Exam P first. If you are strong in finance, you may want to take Exam FM first.
- Your career goals. If you are interested in a career in property and casualty insurance, you may want to take Exam P first. If you are interested in a career in life insurance or investments, you may want to take Exam FM first.
- The availability of study materials. There are a variety of study materials available for both Exam P and Exam FM. However, some materials may be more readily available than others. You should consider the availability of study materials when making your decision.
- The difficulty of the exams. Exam P and Exam FM are both challenging exams. However, some candidates find one exam to be more difficult than the other. You should consider your own abilities when making your decision.
Tips for Passing Exam P and Exam FM
Here are a few tips to help you pass Exam P and Exam FM:
- Start studying early. The SOA recommends that candidates start studying for Exam P or Exam FM at least six months in advance. This will give you plenty of time to cover all of the material and practice your skills.
- Use a variety of study materials. There are a variety of study materials available for both Exam P and Exam FM. Using a variety of materials can help you learn the material in different ways and reinforce your understanding.
- Practice, practice, practice. The best way to prepare for Exam P and Exam FM is to practice solving problems. There are a variety of practice problems available online and in study materials.
- Get help when you need it. If you are struggling with a particular topic, don’t be afraid to get help from a tutor or online forum.
Conclusion
Exam P and Exam FM are both challenging exams, but they are also essential for aspiring actuaries. By following the tips in this article, you can increase your chances of passing these exams and starting your career as an actuary.
