13. Consider an initial insurance portfolio of 20,00 i standard deviation of $300 and an expected loss of $400. Now suppo urance portfolio of 20,000 independent automobile policies, each with writes 1,000 independent fire insurance policies expected loss of $400. Now suppose that this insurer also ent fire insurance policies and to diversify its line base. Each fire policy covers fairly large industrial risks, with an expected to harge industrial risks with anyberte loss of $12.000 and a standard deviation of $15,000. y Calculate the expected value and standard deviation of average for entire insurance portfolio. b) Calculate the ruin probability, assuming the firm une rum probability, assuming the firm estimates that its reserves and surplus permit it to meet claims up to $21 million in total (i.e., $1.000 per poncy n C) NOW assume that these policies are most i dent. the correlation coefficient between any two auto policies is 0.05, and the correlation coefficient between any two fire policies is also 0.05; there is no correlation between auto and fire policies. Calculate a) and b) again