Assignment X2.3 ii

Discussion in 'SP2' started by rlsrachaellouisesmith, Dec 18, 2022.

  1. rlsrachaellouisesmith

    rlsrachaellouisesmith Ton up Member

    Good morning,
    I am struggling to identify a way to structure my answer to this question.
    Because of the reference to 3 distinct sources of error, initially I thought to use the model, parameter and random fluctuations risk. But given the number of marks available I don't think this is correct.
    Should I instead be thinking about how getting the investment return wrong could lead to an incorrect valuation of the assets, and then the liabilities.
    Any guidance you could offer would be much appreciated.
    Thank you,
    Rachael
     

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