I am looking on page 1214 where it is talking about mortality being a diversifiable risk and where they are talking about interest rate risk not be diversifiable.
The two sections look pretty much the same to me, but the formulas are clearly not the same. What is the difference between mortality and interest rate risk that makes the formulas so different?
edit: The bottom assumes that the interest rate is not fixed... I need more sleep :/
The two sections look pretty much the same to me, but the formulas are clearly not the same. What is the difference between mortality and interest rate risk that makes the formulas so different?
edit: The bottom assumes that the interest rate is not fixed... I need more sleep :/
ASM section 63 Interest Rate Risk
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