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Masja [62]
3 years ago
15

The differences between uninsurable and insurable risks

Business
2 answers:
Nastasia [14]3 years ago
5 0
Difference between uninsurable and insurable risks

Answer: The difference is the following: a risk is uninsurable when the insurance company cannot calculate the probability of the risk. On the other hand a risk is insurable if the insurance company has enough statistics to work out the probability of the risk.

I hope it helps, Regards.
Varvara68 [4.7K]3 years ago
3 0
Uninsurable risk is one where the insurance company cannot calculate the probability of the risk occurring which can happen due to numerous reasons. An insurable risk is one where the calculations can be made and the premium that gets paid is determined.
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3 0
2 years ago
You buy a share of The Ludwig Corporation stock for $21.70. You expect it to pay dividends of $1.00, $1.16, and $1.3456 in Years
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Answer:

g = 16%

dividends yield:

Year 1 4.60%

Year 3: 4.78%

<u>expected rate of return: </u>

year 1 20.6%

year 3 20.78%

<u></u>

Explanation:

<u>grow rate:</u>

D1 /D0 = g

1.16/1.00 - 1 = 0.16

1.3456/1.16 - 1 = 0.16

the grow rate is 16%

<u>dividend yield:</u>

dividends/stock price =  dividend yield

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<u>expected rate of return: </u>

dividend yield + grow rate

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