2012 April Q9

Discussion in 'CM2' started by Darragh Kelly, Feb 17, 2022.

  1. Darragh Kelly

    Darragh Kelly Ton up Member

    Hi,

    I have a question in relation to Q9 part (iv).

    I'm not sure I follow why the maximum double default rate is the min rate of lambda,a and lambda,b. Acted solution uses correlation to tease out the solution while IFoA solution uses fact double default rate can't occur faster then min of lambda,a and lambda,b.

    Could someone explain this please?

    Thanks,

    Darragh
     
    Darragh Kelly, Feb 17, 2022
    #1
  2. Steve Hales

    Steve Hales ActEd Tutor Staff Member

    Hi
    The same query appears in this post.
    Let me know if that doesn't help.
    Thanks
     
    Steve Hales, Feb 18, 2022
    #2

Share This Page