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Assume the correlation between the business units are as follows: CGL is considering a re-allocation of capital within the firm and has decided to allocate
Assume the correlation between the business units are as follows: CGL is considering a re-allocation of capital within the firm and has decided to allocate capital to the Perth business unit using the Marginal Method. Based on the information above, determine the total allocation of capital required to cover the economic capital requirement in Perth. Assume the correlation between the business units are as follows: CGL is considering a re-allocation of capital within the firm and has decided to allocate capital to the Perth business unit using the Marginal Method. Based on the information above, determine the total allocation of capital required to cover the economic capital requirement in Perth
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