CAS Exam 7 Spring 2012, Question 24
Study guide: Exam 9
Part a (0.5 points)
Contrast a capital model calibrated to rating agency capital with one calibrated to an economic capital level.
Part b (0.5 points)
Explain how an internal model calibrated to an economic impairment earnings level is different than the models described in part a. above.
Part c (1 point)
Describe two examples of why it may not be practical to use a single internal model for multiple ERM, operational, and capital applications.
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