Hi. I am referring to part (ii) c, does the long-term nominal return include inflation, tax and expenses? The solution says the market value is volatile, but with a high level of free assets the company can absorb movements in the capital value. I am not sure here if the assets are invested in equities or the free assets are invested in equity. Part (ii)d, why would property be suitable for non-guaranteed liabilities? Please advise. Part (ii)e, the solution says the uncertainty of capital values and the currency risk both make these poorly suited to with-profits business under the revalorisation method. Please explain.
