MECE 103 ACTUARIAL ECONOMICS: THEORY AND PRACTICE Solved Assignment 2024-25

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Section-A

Answer the following questions in about 700 words each. Each question carries 20 marks.

1. Why is health insurance important for individuals? Describe the various types of health insurance contracts.

2. Define the term risk. Discuss various categories of risk. How is valuation of risk made?

Section B

Answer the following questions in about 400 words each. Each question carries 12marks.

1. What are the assumptions on which the Black-Scholes theorem is based? What are the important conclusions of the Black-Scholes theorem?

2. What is meant by annuities? Distinguish between various types of annuities.

3. Distinguish between the traditional approach and the integrated approach to risk management.

4. Bring out the significance of extreme value theory.

5. Write short notes on the following:

a) Sinking Fund

b) Net Present Value

c) Hazard Function

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MECE 103 Solved Assignment 2024-25

MECE 103 Handwritten 2024-25

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IGNOU Instructions for the MEG Assignments

MECE 103   ACTUARIAL ECONOMICS: THEORY AND PRACTICE Solved Assignment 2024-25 Before ate mpting the assignment, please read the following instructions carefully.

1. Read the detailed instructions about the assignment given in the Handbook and Programme Guide.
2. Write the course title, assignment number and the name of the study centre you are attached to in the centre of the first page of your response sheet(s).
3. Use only foolscap size paper for your response and tag all the pages carefully
4. Write the relevant question number with each answer.
5. You should write in your own handwriting.