A
Ali10
Member
On page 19 of chapter 23 the notes say "a stochastic modelling exercise is carried out with an n year time horizon to assess the starting values for the traditional valuation at time n"
What exactly does it mean by starting values? I thought alm was projecting cash flows so presumably it tells us how our assets could change in value, but what information does it give us about the liability start point?
What exactly does it mean by starting values? I thought alm was projecting cash flows so presumably it tells us how our assets could change in value, but what information does it give us about the liability start point?