8. You are given: • Expected effective period incurred losses (trended and developed): 60,000,000 • Earned premium at current rates: 100,000,000 • Fixed expense ratio: 10% • Permissible loss ratio: .65 Calculate the indicated rate change.
8. You are given: • Expected effective period incurred losses (trended and developed): 60,000,000 • Earned premium at current rates: 100,000,000 • Fixed expense ratio: 10% • Permissible loss ratio: .65 Calculate the indicated rate change.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![8. You are given:
• Expected effective period incurred losses (trended and developed): 60,000,000
• Earned premium at current rates: 100,000,000
• Fixed expense ratio: 10%
Permissible loss ratio: .65
Calculate the indicated rate change.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7bf0c4da-6eb9-4197-ab38-c97c33633873%2F5bc38755-47f2-42e0-8108-f99a98cff679%2F4wa4k4p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:8. You are given:
• Expected effective period incurred losses (trended and developed): 60,000,000
• Earned premium at current rates: 100,000,000
• Fixed expense ratio: 10%
Permissible loss ratio: .65
Calculate the indicated rate change.
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