Question

The approach not used for allowing for margins in cashflow approach is ____________.

a.

Using margins in the expected values

b.

Using a stochastic approach

c.

Using absolute amount addition of margin in each policy

d.

Using the risk element of the risk discount rate

Answer: (c).Using absolute amount addition of margin in each policy Explanation:Using absolute amount addition of margin in each policy is not used, other three are used.

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Q. The approach not used for allowing for margins in cashflow approach is ____________.

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