Consider a whole life insurance with annual premiums and a 20-year premium paying termissued to a select life aged 30, with sum insured $200,000 payable at the end of the year ofdeath.(a) Write down an expression for the net future loss random variable.(b) Calculate the net annual premium.

Given Assurance type - whole life insurance Premium type - level annual premiums for 20-year term…

Answered: Consider a whole life insurance with…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

An electronics company had sales of $25,000,000 in the year just completed. Sales are expected to decline by 3% per year for the next three years un�l new drugs, now under development, receive regulatory approval. Then sales should grow at 7% per year for the next four years. What are the expected sales for the final year of the seven-year period? [
A portfolio's value increases by 20% during a financial boom and by 7% during normal times. It decreases by 14% during a recession. What is the expected return on this portfolio if each scenario is equally likely?
A report by the Government Accountability Office (GAO) shows that the GAO expects the U.S. Postal Service to lose a record $7 billion at the end of this year, and if the business model is not changed, the losses will total $241 billion by the end of year 10. If the losses increase uniformly over the 10-year period, determine the following:(a) The expected increase in losses each year(b) The loss 5 years from now(c) The equivalent uniform worth of the losses at an interest rate of 8% per year
What is interest?
You are stock price analyst for the company. You are given historical daily stock prices of your company from Day 1 to Day 700 (Assuming stock market trade daily). As- suming the stock price follows the Black-Scholes fråmework. Determine the historical annual volatility, ở of this stock. Next, estimate the expected annual rate of return &. Assuming this is non-dividend paying stock, simulate the daily stock price for the next 90 days with the estimated annual volatility, ô and expected annual rate of return, ôt. Then, simulate the daily stock price again for the next 90 days with 5%, 15%, 25% and 35% deviation of your estimated annual volatility (assuming no change in the estimated rate of return).
4. Suppose that a set of portfolio managers has a chance p = 50% of beating the market by 10% in a given year and chance 1 - p of underperforming by 10%. Performance from one year to the next is independent and uncorrelated. Returns are simple returns and compounding is ignored. (a) What is the probability that a manager will achieve a five-year track record which beats the market for at least 4 out of 5 years? (b) Suppose that unsuccessful managers get forced out of business as soon they are down overall -30%; that is, as soon as as their record contains 3 more losing years than winning years. What is the probability of failure over a five-year horizon? (c) Among those who survive, what is the expected total return?
show me the answer to the question 3 and 4, please
Suppose that during a recent 30-year period, there were eight volcanic eruptions sufficiently powerful to reduce the amount of power generated by solar panels by at least 20% for a period of a year. Call these "Class D20" volcanoes. Suppose that the return on investment from installing solar panels is often calculated over a 25-yearperiod. What is the probability that, during a 25-year period, there will be two or more "Class D20" volcanic eruptions?
Consider a 5-year bond with a face value of $100 that pays an annual coupon of 6% and is currently rated BBB. The expected recovery rate in case of default is 51.13%. In the table below, you are given the probabilities that in one year (i) the bond issuer maintains its BBB rating, (ii) is upgraded to AAA, AA or A or downgraded to BB, B or CCC and (iii) defaults. Rating Probability (%) AAA 0.02 AA 0.33 A 5.95 BBB 86.93 BB 5.3 B 1.17 CCC 0.12 Default 0.18 Consider also the one-year forward yield curve for zero-coupon bonds with different maturities and credit ratings (rates are discretely compounded): Years to Maturity Rating 1 year 2 years 3 years 4 years 3.60% 4.17% 4.73% 5.12% 3.65% 4.22% 4.78% 5.17% 3.72% 4.32% 4.93% 5.32% 4.10% 4.67% 5.25% 5.63% 5.55% 6.02% 6.78% 7.27% 6.05% 7.02% 8.03% 8.52% 15.05% 15.02% 14.03% 13.52% AAA AA A BBB BB B CCC
c. Predict sales in 15 years.
An insurance policy on an electrical device pays a benefit of $2400 if the device fails during the first year. The amount of the benefit decreases by $800 each successive year until it reaches 0 . If the device has not failed by the beginning of any given year, the probability of failure during that year is 0.29.Find the expected benefit under this policy.
Q7.What is the difference between 2019 FYA revenues and LTM revenues (2019 FYA minus LTM)? C "Reported" Year-to-date Revenues in Income Statement: • Q1 2019: $100.0m • Q2 2019: $250.0m • Q3 2019: $500.0m • Q4 2019: $800.0m • Q1 2020: $250.0m • Q2 2020: $400.0m A. +$125m B.-$150m C. +$75m O D.-$25m

SEE MORE QUESTIONS

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

Elementary Statistics: Picturing the World (7th E…

Statistics

ISBN:

9780134683416

Author:

Ron Larson, Betsy Farber

Publisher:

PEARSON

The Basic Practice of Statistics

Statistics

ISBN:

9781319042578

Author:

David S. Moore, William I. Notz, Michael A. Fligner

Publisher:

W. H. Freeman

Introduction to the Practice of Statistics

Statistics

ISBN:

9781319013387

Author:

David S. Moore, George P. McCabe, Bruce A. Craig

Publisher:

W. H. Freeman

SEE MORE TEXTBOOKS

Consider a whole life insurance with annual premiums and a 20-year premium paying term issued to a select life aged 30, with sum insured $200,000 payable at the end of the year of death. (a) Write down an expression for the net future loss random variable. (b) Calculate the net annual premium.