Order to be fully insured against risk of losing his ship

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William owns just one ship. Ship is worth 200 million dollars. The probability the sink will ship is .02. His total wealth including the value of the ship is 225 million. U(W) is equal to the squre root of W. What is the maximum amount that william would be willing to pay in order to be fully insured against the risk of losing his ship?

Reference no: EM13740004

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Order to be fully insured against risk of losing his ship : William owns just one ship. Ship is worth 200 million dollars. The probability the sink will ship is .02. His total wealth including the value of the ship is 225 million. U(W) is equal to the squre root of W. What is the maximum amount that william w..

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