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3. Consider Freixas and Rochet's model of deposit insurance. Suppose that the Deposit insurance agency expects Banks to invest in a portfolio that for every

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3. Consider Freixas and Rochet's model of deposit insurance. Suppose that the Deposit insurance agency expects Banks to invest in a portfolio that for every one unit invested in period 1 pays off in period 2, s of the time and zero, of the time. What is the actuarially fair insurance premium per $1 deposit for Banks Deposits?. A. B. C. D. E. None of A-D . Ob. B Oc. Od D 3. Consider Freixas and Rochet's model of deposit insurance. Suppose that the Deposit insurance agency expects Banks to invest in a portfolio that for every one unit invested in period 1 pays off in period 2, s of the time and zero, of the time. What is the actuarially fair insurance premium per $1 deposit for Banks Deposits?. A. B. C. D. E. None of A-D . Ob. B Oc. Od D

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