Suppose that an insurance company views Jennifer as having the following distribution for the present value of losses:

Loss = $5,000 with probability .10 $2,000 with probability .20 $1,000 with probability .50 $0 with probability .20

What is the fair premium for full coverage if the insurers competitive loading for administrative costs and capital costs is 10% of expected discounted claims?

		$1,400
		$1,540
		$2,090
		$1,900