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Suppose Sam and Jack each separately faces the same exact loss distribution, as follows: Possible Outcomes PROBABILITY SO 0.8 $3,000 0.2 What is the standard
Suppose Sam and Jack each separately faces the same exact loss distribution, as follows:
Possible Outcomes PROBABILITY
SO
0.8
$3,000
0.2
What is the standard deviation per person if Sam and Jack pool risk together and each pays half
whenever the other one experiences a loss?
$1169
$904
O $849
$1031
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