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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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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


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Marked as best answer by fbq8i on Apr 25, 2021

bimper21

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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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