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#1
09-17-2001, 05:05 PM
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SoA5
Life Insurance Products & Finance Exercise 10.1b (page 495): “If the rate of return on capital other than required capital is 18% and required capital represents one-third of total capital, what is the rate of return on total capital?” Answer: rate of return = 42/260 = 16.15% Does this make sense to anyone? How did they get 42/260? 
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#2
09-17-2001, 05:14 PM
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Forget it, I see my error.
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