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Author Question: A home insurance company anticipates the following pattern of claims, based on historical data. What ... (Read 71 times)

Themember4

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on: Apr 25, 2021

Question 1

A company will earn 10% returns in a poor economy, 15% returns in a normal economy, and 25% returns in a booming economy. What is the standard deviation if there is a 25% chance of a poor economy and a 25% chance of a booming economy?
◦ 10.83%
◦ 5.45%
◦ 6.12%
◦ 11.18%
◦ 4.91%

Question 2

A home insurance company anticipates the following pattern of claims, based on historical data. What is the standard deviation of claims?

Type of ClaimSize of ClaimNumber of Claims out of 
10,000 Policy Holders		Probability
1$200,00010.0001
2$50,000100.001
3$2,0002000.02
4$09,7890.9789

◦ $2,562.79
◦ $6,567,900
◦ $2,000
◦ $110
◦ $3,753.52
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by Themember4 on Apr 25, 2021

izzat

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Themember4

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Reply 2 on: Apr 25, 2021
Excellent

fatboyy09

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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