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a. If the loss ratio on a line of property insurance is 73 percent, the loss adjustment expense is 13.8 percent, and the ratio of
a. If the loss ratio on a line of property insurance is 73 percent, the loss adjustment expense is 13.8 percent, and the ratio of commissions and other acquisitions expenses is 14 percent, is this line profitable? b. How does your answer to part (a) change if investment yields of 8 percent are added? Whether the line of property insurance is profitable Whether the line of property insurance is profitable
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