I'm having real trouble figuring out a hard rule for differentiating between these two in sample problems.
Sample question 52 from the SOA official sample questions says
v=
Sigma * T.
Where T is the number of time periods
However the examples of the same sort of problem in ASM (Example 7C)say v=
Sigma * Root(h)
Where h is the length of the period
What the heck is the wording I'm looking for to know that they want me to consider the whole thing one period, vs multiple periods of one year?
Sample question 52 from the SOA official sample questions says
v=
Sigma * T.
Where T is the number of time periods
However the examples of the same sort of problem in ASM (Example 7C)say v=
Sigma * Root(h)
Where h is the length of the period
What the heck is the wording I'm looking for to know that they want me to consider the whole thing one period, vs multiple periods of one year?
Lognormal Simulation of Stock Prices