All categories

4 years ago

What is the difference between insurable and non-insurable risk

Business

1 answer:

vova2212 [387]4 years ago

8 0

<span>All risks cannot be transferred to the insurer. Mostly, pure risks can be transferred to the insurer</span>

You might be interested in

An economy begins in long-run equilibrium, and then a change in government regulations makes holding money less attractive. a. (

deff fn [24]

Answer: Demand Curve shifts left

Explanation:

Money is now less attractive to hold so people will demand less of it. This will cause the demand curve in the monetary market therefore to shift to the left.

Shifts in the demand curve for money are usually caused when a non-interest determinant of demand changes such as a decrease in income.

7 0

3 years ago

Allocating Joint Costs Using the Net Realizable Value Method

Ilya [14]

Answer:

Allocating Joint Costs Using the Net Realizable Value Method

1. Joint Cost

Grades Allocation

L-Ten $1,850

Triol 6,569

Pioze 3,881

Total $12,300

2. Joint Cost

Grades Allocation

L-Ten $2,112

Triol 5,756

Pioze 4,432

Total $12,300

Explanation:

a) Data and Calculations:

Cost of each production run = $12,300

Product Gallons Further Processing Eventual Market Net Realizable

Cost per Gallon Price per Gallon Value

L-Ten 3,200 $0.70 $2.10 $4,480

Triol 3,700 1.10 5.40 15,910

Pioze 2,000 1.50 6.20 9,400

Total 8,900 $29,790

Allocation of join cost:

L-Ten = $4,480/$29,790 * $12,300 = $1,850

Triol = $15,910/$29,790 * $12,300 = $6,569

Pioze = $9,400/$29,790 * $12,300 = $3,881

Product Gallons Further Processing Eventual Market Net Realizable

Cost per Gallon Price per Gallon Value

L-Ten 3,200 $0.70 $2.10 $4,480

Triol 3,700 2.10 5.40 12,210

Pioze 2,000 1.50 6.20 9,400

Total 8,900 $26,090

Allocation of join cost:

L-Ten = $4,480/$26,090 * $12,300 = $2,112

Triol = $12,210/$26,090 * $12,300 = $5,756

Pioze = $9,400/$26,090 * $12,300 = $4,432

7 0

3 years ago

Which of the following is an advantage of gathering data with surveys?

Dafna11 [192]

C- they help get people’s opinions and day to day activities that they might do.

5 0

3 years ago

You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays n

Anastasy [175]

Answer:

$13.64

Explanation:

Given:

Exercise price,X = $100

Current price = $100

Value when price is up, uS = $120

Value when price is down, dS= $80

Risk free interest rate = 10%

First calculate hedge ratio, H:

$H = \frac{C_u - C_d}{uS - dS}$

Where,

Cu = uS - X

= 120 - 100

= $20

$H = \frac{20 - 0}{120 - 80} = \ftac{1}{2}$

A risk free portfolio involves one share and two call options.

Find cost of portfolio:

Cost of portfolio = Cost of stock - Cost of the two cells.

= $100 - 2C

This portfolio is risk free. The table below shows that

_______________

Portforlio 1:

Buy 1 share $80; Write 2 calls: $0; Total: ($80 + 0) $80

____________________

Portforlio 2:

Buy 1 share: $120; Write 2 calls: -$40; Total: ($120 - $40) $80

Check for oresent value of the portfolio:

Present value $= \frac{80}{1 + 0.10} = 72.73$

Value = exercise price - value of option

$72.73 = $100 - 2C

Find call option, C

$C = \frac{100 - 72.73}{2} = 13.64$

Call option's value = $13.64

8 0

3 years ago

Why are dividends from a mutual insurer not subject to taxation

sergij07 [2.7K]

Because dividends are considered to be a return of premium I hope this helps ya out

7 0

3 years ago