please anwer both

2. (a) The property losses for Merrygold Corporation for two branches have the following distributions: Assume that all claim payments will be made at the end of 1 year, the interest rate is 9 percent and administrative expenses are 16 percent of the expected claim cost. If the profit loading is 4 percent of the expected claim cost, calculate fair premium for each branch. (14 marks) (b) Risk aversion is the fundamental force that induces people to purchase insurance. State FIVE (5) factors affecting an individual's demand for insurance. (5 marks) (c) The concept of business risk revolves around the potential decrease in business value stemming from various sources. State and explain THREE (3) major business risks that give rise to variation in cash flows and business value. (6 marks) (a) Assume that YTL Corporation has a distribution of warehouse fire damageas below: Based on information above, calculate: i. Frequency of losses. (2 marks) ii. Average accidents severity. (2 marks) iii. Expected loss from fire damage for each warehouse. (2 marks) (b) Khairul and Amir enter a pooling arrangement. Assume that both women have the following loss distributions and that losses are independent. Based on the information given, calculate the expected loss and standard deviation of expected loss: i. Without pooling arrangement. (4 marks) i. With pooling arrangement. (15 marks)