Competitive insurance market

Assignment Help Finance Basics
Reference no: EM132679198

1.If the probability of an injury is 0.07, the cost of the injury is $9,075, the insurer's loading costs are $3,573, and the number of policies is 413, then in a competitive insurance market, each policy will cost $____.

2.If the probability of a house fire is 0.005, the cost of the the fire is $259,569, the insurer's loading costs are $29,237, and the number of policies is 2,320, then in a competitive insurance market, each policy will cost $____.

3.Jimmy will have $95,497 in wealth and a utility of 318 when he is healthy and $36,814 in wealth and a utility of 153 when he is ill. What is Jimmy's expected utility if the chance of illness is 0.05?

4.Jenny will have $188,751 in wealth and a utility of 298 when she is healthy and $100,133 in wealth and a utility of 143 when she is ill. What is Jenny's expected utility if the chance of illness is 0.19?

5.If your wealth is equal to $93,719 when healthy and $27,141 when ill and your probability of illness is 0.17, what is your expected wealth in dollars?

ROUND TO THE NEAREST CENT.

6.If your wealth is equal to $201,467 when healthy and $34,180 when ill and your probability of illness is 13, what is your expected wealth in dollars?

ROUND TO THE NEAREST CENT.

Reference no: EM132679198

Questions Cloud

Determine forward rate for various one-year interest rate : Determine the forward rate for various one-year interest rate scenarios if the two-year interest rate is 8 percent, assuming no liquidity premium
Topic-ipo of fitbit : Please give a detailed background write-up of the firm and the industry in which it existed/exists.
What is the author trying to convey : What is the author trying to convey, and what are the primary and secondary points that are made? How does this fit in against the backdrop of all that we are.
Calculate the value of equity after restructuring for pp ltd : The PP Ltd. is currently an all-equity firm. The debt will sell at par. Assuming MM1963 world with tax, calculate the value of the equity after restructuring?
Competitive insurance market : If the probability of an injury is 0.07, the cost of the injury is $9,075, the insurer's loading costs are $3,573, and the number of policies is 413
What is the appropriate liquidity premium : The default risk premium is estimated to be 0.6 percent, and there is a 0.4 percent tax adjustment, then what is the appropriate liquidity premium
What is the enterprise value of r corp : What is the Enterprise Value of R Corp by using the P/E RATIO? Which estimate is likely to be more accurate
Calculate the value of the equity after restructuring : The Dance Studio is currently an all-equity firm. The debt will sell at par. Assuming MM1963 world with tax, calculate value of the equity after restructuring?
Explain the potential effectiveness of the techniques : Using situational theories of crime, explain the potential effectiveness of these techniques. Be sure to cite three to five relevant scholarly sources.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd