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403 Sept 2000 Q5(iii)

  • Thread starter Thread starter ActuaryGirl
  • Start date Start date
A

ActuaryGirl

Member
Hi, so in Q5(iii) I am following the solution except for from this point onwards and i am probably being dumb

Variance of loss portfolio $1,355,969 million: independent events so variances additive
Standard deviation of loss portfolio: $1,164,461
Additional standard deviation $122,935
Additional premium required $157,087
Since the market premiums for the two risks are the same, the company should write the hurricane exposure
 
Hi ActuaryGirl
I've trawled through my files and found the attached spreadsheet printout - unchecked - hopefully this may back up the figures above. If you need to know any of the calcs behind the cells, just email me.
Ian
 

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