Fall 2017 #25 part b
in MSA.Ratios
For the insurance return to net EP, in the wiki the top of the equation says UW income - cap gains + inv income (from UW income) . How come it the solutions, cap gains was not subtracted like this: 2400 - 1000 + (1500-400)*0.7
Comments
Well the investment income taken in the answer key does not include capital gains already so why would you subtract it twice?