#title.health insurance., Financial Econometrics

Assignment Help:
Ask Sita expects her future earnings to be worth Rs. 100. If she falls ill, her expected future earning will be Rs. 25. There is a belief that she may fall ill with probability of + , while the probability of remaining in good health is - ,. Let her utility function be given as U( y) = ./ *. suppose that an insurance company offers to fully insure Sita against loss of earnings caused by illness against
an actuarially fair premium.
(a) Will Sita accept the insurance? Explain.
(b) What is the maximum amount that Sita would pay for the insurance?
question #Minimum 100 words accepted#

Related Discussions:- #title.health insurance.

ASSIGNMENT, I have an assignment I need help understanding how to do step b...

I have an assignment I need help understanding how to do step by step abouot predictability on excess returns

investors could expect to earn 8 percent, A new capital investment that wi...

A new capital investment that will cost $2.5 million and will generate perpetual net cash flows of $400,000 a year. Investors could expect to earn 8 percent elsewhere while taking

Interest rate parity and interest arbitrage theories, Below is information ...

Below is information about the spot and forward rates for three currencies against the US dollar (USD): (a) Critically discuss the interest rate parity and covered interest

Effective yield to maturity, Research in Motion (RIM), once known as the gl...

Research in Motion (RIM), once known as the global leader in wireless innovation, has lost its darling status after the introduction of the Apple iPhone.  In 2011, RIM's stock pric

What do you meant by equilibrium national income, Question 1: a) What ...

Question 1: a) What do you meant by equilibrium National Income and to what extent is economic growth beneficial to an economy? b) Explain using both diagrams and mathemat

Quantitative Finance, I need help on few questions related to quantitative ...

I need help on few questions related to quantitative finance. Could you help me out in those.

Investment is expected to return of 5 percent in the future, If an investme...

If an investment is expected to return of 5 percent in the future, a $53,000 investment will grow to how much in 22 years?

Analyze the asset price channels, Problem 1: (a) Analyze the asset pri...

Problem 1: (a) Analyze the asset price channels other than the traditional interest rate channel. (b) Analyze Bank lending channel and discuss its importance for the Mau

Show the quick ratio or acid test, Q. Show the Quick ratio or acid test? ...

Q. Show the Quick ratio or acid test? Quick ratio = Current assets less inventories/Current liabilities (times) This ratio measures immediate solvency of a business as it re

You earn an effective annual return of 6 percent, You decide to max-out you...

You decide to max-out your annual investment into your Individual Retirement Account and invest $6,000 at the end of each year for the next 17 years. At the end of this investment

Write Your Message!

Captcha
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