hi , maybe it s trivial but i dont understand the following it says that claims are 60% higher. why 200/1.6=125 and not just say 200*60%=120? similarly why for mat : 10000/0.9*1.05 and not 10000*0.9*1.05? thanks
Hi It is the way the question is written: You are being asked for the movement in asset share and the question says that: For deaths: the 200 is 60% higher than asset shares. So asset share*1.6 =200. Likewise, with the maturities: the 10,000 is based on smoothed asset share which is 90% of asset share (and is increased by 5%). So asset share*0.9*1.05 = 10,582. Hope this helps. Thanks Em
