Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

Part A:

problem 1:

a) Show that the nominal rate of interest convertible once in every 4-year is to a nominal rate of discount convertible quarterly.

b) John buys a 10-year bond, of face and redemption amount, x, with 10 percent annual coupons at a price to yield 10 percent effective annual rate. The coupons, when received are reinvested immediately at 8 percent effective annual rate. Instantly after the receipt (and reinvestment) of the 4th coupon John sells the bond to Smith for a price that will yield effective annual rate i to the buyer. The yield rate that John earns on his investment is 8 percent effective annual value of i.

problem 2:

a) Discuss the Bayesian approach to credibility theory

b) Let X1 be the outcome of a single trial and let E (X2 X1) be the expected value of the outcome of a second trial. You are given the information:

1270_bayesian approach.jpg

Find out the Bayesian estimate for:

E [X2 |X1 = 16].

Part B:

problem 3: What is the basic principle of equivalence employed in insurance? Do you think some modifications have come up recently in applying that principle due to inclusion of financial valuation practices? Provide reasons in support of your answer.

problem 4: Describe how the valuation in financial markets has influenced the valuation in insurance market. Do you think this influence has changed the principle of equivalence used in insurance problems?

problem 5: Describe the concept of ruin probability.

problem 6: Consider a binomial market model and discuss how a market in this formulation admits an arbitrage opportunity. As well, propose a trading strategy that describes the arbitrage.

problem 7: prepare Short notes on:

i) Black-Scholes Theorem. 
ii) Panjer Recursion. 
iii) Reinsurance Pricing. 
iv) Insurance Regulation.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92115

Have any Question? 


Related Questions in Microeconomics

Question 1 - read the following passage carefully and

Question 1 - Read the following passage carefully and answer questions The beverages industries in which Pepsi operate are highly competitive. They compete with major international beverage companies in multiple geograph ...

Assignmentlinking questions 51 which one of the generic

Assignment Linking questions 5: 1. Which one of the generic competitive strategies best characterize your company's strategic approach to competing successfully? 2. Which athletic footwear companies in your industry appe ...

Assignmentfirms use inputs workers machinery natural

Assignment Firms use inputs (workers, machinery, natural resources) to produce outputs (goods and services). For example: General Motors uses steel, rubber and other materials to create automobiles. A pizza restaurant tu ...

Micro economics paperyou have been given the responsibility

Micro Economics Paper You have been given the responsibility of working with your organization's CEO to do a competitive market analysis of the potential success of one of their existing products. Select your organizatio ...

Assignmentyou are the director of safety and health at

Assignment You are the Director of Safety and Health at Rotorcraft America, a mid-sized company that designs, manufactures and sells helicopters. Your organization has manufacturing operations in San Francisco, Californi ...

Assignmentwhat are the most important knowledge assets at

Assignment What are the most important knowledge assets at Dirt Bikes? What functions and employee positions are responsible for creating, distributing, and using these knowledge assets? Are all of these assets explicit ...

Assignmentselect and review an inspection report posted on

Assignment Select and review an inspection report posted on the OSHA website. The inspection reports can be searched by industry group or establishment name by accessing the reports through the OSHA's Statistics & Data P ...

Topic minimum wage workers who actually are minimum wage

Topic: Minimum wage workers _ Who actually are minimum wage workers? _ What are the profites of raising minimum wage? _ What are the con's of raising minimum wage? _ What in your opinion should we do about minimum wage?

Scenario descriptionbigjet plans to launch a weekly flight

Scenario Description Bigjet plans to launch a weekly flight on a long-haul route. It faces four sets of decisions corresponding to short-run, medium-run, long-run, and very long-run operations. Short Run: In the short ru ...

Instruction please answer all questions all questions carry

Instruction: Please answer ALL questions. All questions carry equal marks. Please do not write over 2000 words for the entire assignment. 1. a. Using the graph shown, analyze the effect a $300 price ceiling would have on ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro