Hi All, Please help me understand the second paragraph of solution of Question Q8 iii) Not clear how gearing effect is crucial here and how the second paragraph aligns with the requirement of the question. Also, please explain how the percentage value came in say 20% I am attaching the link to relevant question and solution http://www.actuariesindia.org/downloads/exampapers/mar2017/SOL/ST5.pdf http://www.actuariesindia.org/downloads/exampapers/mar2017/Q_ST5.pdf Thanks Ayushi
