apr 2015 q1 iii- correlations

Discussion in 'SA2' started by dimitris13, Sep 17, 2019.

  1. dimitris13

    dimitris13 Member

    Hi,
    the solution describes the -ve correlation starting from persistence and ending in higher expenses. would it be valid the follow the opposite argunent? eg increase in expenses (for some reason) unit fund goes down withdrawal 8ncreases. ?

    thanks
     
  2. Em Francis

    Em Francis ActEd Tutor Staff Member

    Possibly but only if the company decided to reflect those increased expenses via charges to the unit-linked fund.

    Thanks
    Em
     

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