Y
yogesh167
Member
Hi
Can you please help me with the following questions:
1. Ch-10 Section 1.2 what do you mean by-‘financial promotions contain excessive small print which consumers dislike- what do you mean by financial promotions?
2. Ch-11
· Difference between RCR(Peak1) and RCM(Peak 2)?
· Difference between ICA(Pillar 2) and RBS (Peak2)?
· We use best estimate assumptions generally for RBS, EEV and SII. (RBS calculates asset shares, EEV calculates PVIF and SII calculates best estimate of liabilities). I am just confused why its not possible to calculate AS, PVIF etc using any one of the 3 measures?
· What is the reason behind calculation of WPICC(peak 1 for realistic firms) and RCR(peak 1 for regulatory firms) differently, when both of these fulfil similar purpose – i.e. calculating additional capital requirements?
· Why high lapse assumption may be prudent in early term and low rate is likely to be prudent at later durations?
· Page 21- para 1 in bold- this is caused by ‘non linearity’ and ‘non separability’ of individual risks, the latter referring to the ways in which risk drivers interact with each other. I don’t understand this?
3. Ch-12 Section 2. How counterparty risk exposure is increased by long positions in futures and options and decreased by short position?
Can you please help me with the following questions:
1. Ch-10 Section 1.2 what do you mean by-‘financial promotions contain excessive small print which consumers dislike- what do you mean by financial promotions?
2. Ch-11
· Difference between RCR(Peak1) and RCM(Peak 2)?
· Difference between ICA(Pillar 2) and RBS (Peak2)?
· We use best estimate assumptions generally for RBS, EEV and SII. (RBS calculates asset shares, EEV calculates PVIF and SII calculates best estimate of liabilities). I am just confused why its not possible to calculate AS, PVIF etc using any one of the 3 measures?
· What is the reason behind calculation of WPICC(peak 1 for realistic firms) and RCR(peak 1 for regulatory firms) differently, when both of these fulfil similar purpose – i.e. calculating additional capital requirements?
· Why high lapse assumption may be prudent in early term and low rate is likely to be prudent at later durations?
· Page 21- para 1 in bold- this is caused by ‘non linearity’ and ‘non separability’ of individual risks, the latter referring to the ways in which risk drivers interact with each other. I don’t understand this?
3. Ch-12 Section 2. How counterparty risk exposure is increased by long positions in futures and options and decreased by short position?