Assume that your liquid wealth is $100,000 and you own a car worth $35,000. Every month, there
Question:
Assume that your liquid wealth is $100,000 and you own a car worth
$35,000. Every month, there is a 0.10% chance that you will get into a car accidentwhere the carwill be totalled and so you need to buy a new car. There is also a 0.50% chance that a damage of $5,000 will occur.
How much are you willing to pay for insurance if your risk-aversion parameter is γ = 1?
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John Kago
Am a processional practicing accountant with 5 years experience in practice, I also happens to have hands on experience in economic analysis and statistical research for 3 years. am well conversant with Accounting packages, sage, pastel, quick books, hansa world, etc, I have real work experience with Strata, and SPSS
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Related Book For 
Strategic Financial Planning Over The Lifecycle A Conceptual Approach To Personal Risk Management
ISBN: 9780521148030
1st Edition
Authors: Narat Charupat, Huaxiong Huang, Moshe A. Milevsky
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