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If a life insurance company has risk-based assets as indicated in the table below, how much equity must it have? Risk category Description Risk adjusted

If a life insurance company has risk-based assets as indicated in the table below, how much equity must it have?

Risk category

Description

Risk adjusted charge (millions)

C0

Asset risk – affiliates

4.25

C1

C1cs

Asset risk – Common stock

7.50

C!o

Asset risk – Other investments

3.50

C2

Insurance risk

9.00

C3

C3a

Credit risk

4.75

C3b

Interest rate risk

6.35

C3c

Market risk

3.60

C4

C4a

Business risk

4.00

C4b

Administrative risk

1.25

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