An insurance company with an initial capital of 47 is distributing its Binomial- compound-Gamma portfolio with 23 contracts among 18 identical reinsurance companies. What is the optimal premium it should pay to each of the reinsurers in exchange for taking on its risk? Assume that: • the company is willing to accept a probability of ruin of 0.03 under Cramer- Lundberg's model, • the probability of having a claim filed is 0.1, • the mean of the claims is of 8, • the variance of the claims is 1.

Q: Why is it important to have an FMS option?

A: FMS "FLEXIBLE MANUFACTURING SYSTEMS" A collection of numerically controlled machine tools that are…

Q: answer is incorrect, can someone double check?

A: Present value of bond = Present value of principal to be received at the maturity + Present value of…

Q: Why are we going for commutative filters in DBMS?

A: Thais question explained about  why are we going for commutative filters in DBMS:

Q: Going beyond just calculating NPV, discuss it qualitatively. What is it used for? Is it a good…

A: Net present value is defined as the difference between the PV of the cash inflows as well as present…

Q: What are the advantages and disadvantages of  FIFO?

A: First-in-First-Out:  In First-in-First-Out method, the costs of the initially purchased items are…

Q: What are some of the advantages of a multi-step approach?

A: An extensive examination of a company's costs and net income is provided by a multi-step income…

Q: What assumptions underlie the EOQ model?

A: The model that helps in calculating the optimal amount of quantity needs to be purchase for…

Q: From where has the concept DU pont Analysis comes?what’s the formula?

A: Ratio Analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: Sensitivity Analysis Methods

A: Sensitivity analysis is an analysis method that is used to identify how many variations in the input…

Q: important to have an FMS option

A: FMS Stock Options refers to all outstanding options to buy stocks of FMS Common Stock bestowed under…

Q: What is Monte Carlo simulation?

A: The question is based on the concept of Monte Carlo simulation, the method is based on  stochastic…

Q: Explain about the Black–Scholes model.

A: Black Scholes option pricing model is probably the most commonly used option pricing model in…

Q: What is Monte Carlo simulation analysis?

A: Answer: Monte Carlo simulation is the methodology used to consider the financial, cost, and project…

Q: What is differential analysis?

A: Differential analysis: An analysis which only considers changes in income and expenses of an entity…

Q: What is the purpose of a Limit Test?

A: Definition:   Limit test: It checks the data by evaluating it with the predetermined upper and…

Q: Explain the drawbacks of IRR over MIRR with example?

A: Capital budgeting is part of investment decisions. Business firms consider capital budgeting in…

Q: What is the big bang approach?

A:

Q: What is modified breakeven analysis?

A: Break even analysis refers to the financial computation that weights the new business cost, product…

Q: ut how is this related to CAPM and beta?

A: The Capital asset pricing tells that the how much should be required rate based on the risk of the…

Q: What are the implications of CVP analysis?

A: The CVP analysis stands for cost volume profit analysis.

Q: What are the advantages and disadvantages of  LIFO?

A: Last-in-First-Out: In Last-in-First Out method, the costs of last purchased items are considered as…

Q: What is multiple IRRs?

A: Multiple IRRs IRR is a discounting rate at which an amount of investment equals PV of the future CF.…

Q: What are the implications of CVP analysis?

A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…

Q: What are the Replacement-Analysis Fundamentals?

A: Replacement analysis refers to the process where an organization determines whether it is beneficial…

Q: es RTN hold any importan

A: In online transactions are done based on codes and codes are given for the name of bank and area of…

Q: What are the CVP assumptions?

A:

Q: What is the DCF method?

A: DCF is a complex tool for valuation which approximates the value of any investment depending upon…

Q: What is counterbalancing?

A: Errors: The comparability and consistency of the financial statements decreases when a company…

Q: What is sensitive analysis?

A: Sensitive analysis is a method for predicting the outcome of a decision if a situation turns…

Q: What are the assumptions of Walter’s model?

A: The Walter Model of Careers is an influential theory in the field of career development. This model…

Q: Determining current portion of long-term note payable On January 1, Irving Company purchased…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Why is EBITDA controversial?

A: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is a metric used to assess…

Q: Can somebody check if this is right it's a hw problem on cengage?

A: Hi, All the ratios you have calculated is right. Thanks

Q: What are the benefits and drawbacks of FIFO?

A: Introduction: First-in-First-Out:  In First-in-First-Out method, the costs of the initially…