An insurer sells a one-year policy to people with the following loss distributions: Size of loss Probability of loss
11,000 0.05
30,000 0.01
10,000 0.02
5,000 0.05
0 0.915

Assume:

a. The fair premiums, the administrative expenses and the profit loading are all paid at the beginning of the year.
b. The claims are paid one year later; 3) The interest rate is 10%
c. The administrative expenses are assumed to be 10% of the expected claim cost
d. The profit loading is assumed to be 2% of the expected claim costs.

Required:
Find the fair premium for the policy.

Greenway industries is a major multinational conglomerate. its business units compete in a range of industries, including home appliances, pharmaceuticals, commercial real estate, and plastics manufacturing. although its largest business unit, which produces kitchen appliances, is among the most profitable in the industry, it generates only 35 percent of the company's revenues. which of the following is most likely true of greenway's stock price? a. it is valued at less than the sum of its individual business units. b. it is valued at greater than the sum of individual business units. c. it is valued at the exact sum of individual business units. d. it is consistently lower than the industry average.it is valued at greater than the sum of individual business units.