Jenil Mehta
Keen member
In the solutions provided by IFoA, for investment returns is mentioned that "We would expect the actual investment returns to be lower than the assumptions if the basis was prudent".
Can you please explain the reason behind this statement because as per my understanding, if my assumptions are prudent then the actual interest rate should be higher than the valuation interest rate correct?
Can you please explain the reason behind this statement because as per my understanding, if my assumptions are prudent then the actual interest rate should be higher than the valuation interest rate correct?