Question

What is the significance of considering the size of margins required for the investment assumption?

a.

It ensures undercharging for investment guarantees

b.

It determines the sensitivity of the investment assumption

c.

It has no impact on the modeling results

d.

It increases the investment return assumptions

Answer: (b).It determines the sensitivity of the investment assumption Explanation:Considering the size of margins required for the investment assumption determines the sensitivity of the investment assumption, ensuring appropriate pricing and risk management.

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Q. What is the significance of considering the size of margins required for the investment assumption?

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