Q. Who is the final judge of what constitutes an appropriate rate of return for shareholders?

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Q. Why can't the overall rate of return from the Capital Asset Pricing Model (CAPM) be directly used as the risk discount rate in pricing models?

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Q. How does launching a new product with innovative design features affect the risk discount rate?

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Q. How does a change in the mix of business impact the market's evaluation of a company's riskiness?

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Q. How does the lack of historical data affect the riskiness of a product design?

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Q. Why do high guarantees contribute to the riskiness of a product?

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Q. How do policyholder options impact the riskiness of a product?

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Q. What effect do high overhead costs have on the riskiness of a product?

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Q. How does the complexity of design impact the riskiness of a product?

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Q. Why does targeting an untested market contribute to the riskiness of a product?

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Q. How is the risk discount rate determined for different products?

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Q. What is the relationship between the risk discount rate and the risk-free rate?

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Q. How should the risk discount rates for different products be determined?

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Q. What is the purpose of profit criteria in pricing a product?

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Q. How does the gross premium valuation method calculate reserves for life insurance liabilities?

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Q. Which method is typically used for calculating reserves of life insurance liabilities in India?

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Q. When calculating reserves using the gross premium valuation method, which cashflows are considered?

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Q. How are reserves calculated for life insurance policies?

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Q. What is the purpose of the "Margin for adverse deviation" (MAD) used in reserving?

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Q. Why are the assumptions used for reserving exercises more prudent compared to those used for pricing?

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