Spring 2017 Q22c
Hi, can someone please help me understand what is meant below for the most common error for part c?
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Hi, can someone please help me understand what is meant below for the most common error for part c?
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Spring 2017 Q22c is talking about the Square root rule for BCAR. Are you sure you have the right question?
I think that might be Q23. I am referring to this question
Whoops my bad - It was too early in the morning
Basically what I guess most candidates were writing is that there is a large concentration in terms of investments for this company (i.e. their investment results was highly dependent on the local real estate market). For an interaction, you need to identify two risks whereas most candidates only highlighted the market risk here. What examiners was looking for was for candidates to highlight the interaction of both insurance risk (Catastrophe causing massive insurance losses) and market risk (Catastrophe causing their investment returns to plummet at the same time they suffer massive insurance losses)
That makes sense, thanks @Staff-T1