Question
Suppose sam and jack each separately faces the same exact loss distribution, as follows: Probability of Outcomes PROBABILITY $0 0.8 $3,000 0.2 What is the
Suppose sam and jack each separately faces the same exact loss distribution, as follows:
| Probability of Outcomes | PROBABILITY |
| $0 | 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?
-
$849
-
$1169
-
$904
-
$1035
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The Oxford Guide To Financial Modeling
Authors: Thomas S Y Ho, Sang Bin Lee
1st Edition
019516962X, 9780195169621
