RBC-practice set 1

marodriguezmarodriguez
in Odomirok.19-RBC

Hello,
I'm reviewing the R4 excel practice problem and see in your solution you give 30% weight for direct loss sensitive and 15% for assumed loss sensitive (A% and D%) . Then combined them to get the Loss Sensitive Discount. Where did you get the 30% and 15% from?
-Marco

Comments

  • grahamgraham

    Those factors are given as part of the RBC framework and formulas. Here is the releveant portion of the source text:

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