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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Question
Transcribed Image Text:Insurance An insurance company insures a
person's antique coin collection worth
$20,000 for
an annual premium of $300. If the company
figures that the probability of the collection
being stolen is 0.02, what will be the
company's expected profit?
а.
Expected profit is $140.
b.
Expected profit is $254.
С.
Expected profit is $280.
d.
Expected profit is $220.
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