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Author Question: A home insurance company anticipates the following pattern of claims, based on historical data. What ... (Read 134 times)

fbq8i

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on: Apr 25, 2021

Question 1

Which of the following would be the most useful to an investor who is evaluating securities to add to her portfolio?
◦ The previous opportunity cost of holding the asset
◦ The simple interest return
◦ The historical return
◦ The expected return
◦ The Lynch risk-adjusted historical return

Question 2

A home insurance company anticipates the following pattern of claims, based on historical data. What is the expected claim on the next policy sold by the company?

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

◦ $100
◦ $110
◦ $120
◦ $130
◦ $140
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by fbq8i on Apr 25, 2021

bimper21

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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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fbq8i

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Reply 2 on: Apr 25, 2021
Wow, this really help

bbburns21

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

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