Solution-Calculate the value of an annuity with uncertain

Calculate the value of an annuity with uncertain duration

Reference no: EM131757960

Question: Calculate the value of an annuity with uncertain duration: it will pay $1000 every year for either 5 years, 10 years; or 15 years with equal probability. Assume the discount factor is β = 0.9 and the decision maker is a delta person with risk tolerance equal to

i. p = 5000

ii. p = 10,000

Reference no: EM131757960

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Calculate the value of an annuity with uncertain duration

Reference no: EM131757960

Reference no: EM131757960

Questions Cloud

Reviews

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Basic Statistics Questions & Answers

Statistics-probability assignment

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Estimate the population mean

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Assured A++ Grade

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