Question

What is the purpose of using interest rate models and equity pricing models in estimating likely future returns?

a.

To ensure precise estimation for interest sensitive products

b.

To reduce the level of new business strain

c.

To increase the level of free assets

d.

To simplify the estimation process

Answer: (a).To ensure precise estimation for interest sensitive products Explanation:Interest rate models and equity pricing models are used to ensure precise estimation for interest sensitive products, allowing for accurate determination of likely future returns.

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Q. What is the purpose of using interest rate models and equity pricing models in estimating likely future returns?

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