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Two business owners own identical buildings valued at $ 1 0 millions There is a 5 % chance each building will be destroyed by a

Two business owners own identical buildings valued at $10 millions There is a 5% chance each building will be destroyed by a peril in any year Loss to either building is an independent event
Calculate expected value and standard deviation of the loss for each owner if
(a) The owners are independent.
(b) The owners pool their loss exposures, and each agrees to pay an equal share of any loss that
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