Finance 432Class Exercise #12Find a partner for this exercise. List both of your names below:______________________________________________________________________________List the major points you would make if asked to briefly explain each of the following terms to the indicated audience. 1. Explain ALM to the vice president of underwriting of a property-liability insurer2. Explain effective duration to a long time pension actuary who has not studied finance3. Explain why Warren Buffet terms derivatives as “financial weapons of mass destruction.”4. Explain the risks of an interest rate collar for a life insurance company to the CEO 5. Explain statutory valuation to a person with a basic understanding of finance6. Explain the cash flows on a forward rate agreement (FRA) to the vice president of marketing of a life
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