What is the cost for having inflation indexation

Assignment Help Accounting Basics

Reference no: EM132539324

FINM4100 Data Analytics in Accounting, Economics & Finance - Kaplan Business School

Assessment - Workshop Hand-up Questions

Question 1: Use Week 8 (Workshop 1) to answer the following questions

a) In KYC E1, we examined the relationship between age and life expectancy. Challenger has a perpetual annuity product that pays the policyholder an annual payment for as long as they are alive. How can age-based life expectancy help Challenger price this product?

b) In KYC E2, we looked at how a Cumulative Distribution Function (CDF) can help us determine population proportions.

Challenger currently operates in Australia and is considering an expansion in the the US market. The company has determined that its target demographic encompasses individuals between the ages of 60 to 79.Use the demographic profiles provided to calculate the expected market sizes for each country and gender combination (express your answer in percentages).

Question 2: Use Week 9 (Workshop 2) to answer the following questions

a) In Macro Environment E1, we looked at Consumer Price Index (CPI) as a measure of inflation. In our analysis, we found that using smoothed CPI provided better results in estimating future interest rates. Discuss one advantage and one disadvantage in using smoothed CPI to forecast interest rates.

b) In Know Your Product E1, we discussed inflation shielding as a product feature in annuities. What are the benefits of inflation indexation in fixed income products? Why is it important for retirees? What is the cost for having inflation indexation as a product feature?

Reference no: EM132539324

Questions Cloud

How best to work with individuals of other cultures as nurse : Name two key points you learned from the class and/or the text that helped you understand how best to work with individuals of other cultures as a nurse?

How stress management method contributes : Explain how your stress management method contributes to your positive work-life balance.

How bba program to be more productive in current career : Discuss how you will use the lessons learned in your BBA program to be more productive in your current and future career. Provide specific examples t

Worldview analysis and personal inventory : Explain the Christian perspective of the nature of spirituality and ethics in contrast to the perspective of postmodern relativism within health care.

What is the cost for having inflation indexation : Discuss one advantage and one disadvantage in using smoothed CPI to forecast interest rates and Why is it important for retirees

Who is the author intended audience : What is the author's main point? Who is the author's intended audience? Do the author's arguments support the main point?

How can the nurse ensure culturally competent care : A 45-year-old Vietnamese woman is in the emergency room with severe abdominal pain. Her teenage sons are with her, ages 14 and 19. The nurse asks if the sons.

Find how does exercising christian principles play a part : Find How does exercising Christian principles play a part in running a successful business while operating within state and federal regulations?

Explain the value professional nursing organizations have : Discuss how professional nursing organizations support the field of nursing and how they advocate for nursing practice. Explain the value professional nursing.

User Account

All Pages