Why does assumption of independence of risks matter, Microeconomics

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Why does assumption of independence of risks matter

"Why does the assumption of independence of risks matter in the examples of insurance? What would happen to premiums if the probabilities of houses burning were positively correlated? Can you think of a situation where the might be negatively correlated"

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Microeconomics: Why does assumption of independence of risks matter

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Microeconomics: Why does assumption of independence of risks matter

Reference No:- TGS051596

Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

Q : How do i get prepaid insurance and insurance expense

Q : Why gross domestic productis criticised-measure of economic

Q : What are cash equivalents

Q : Lockboxes and collections

Q : Why does assumption of independence of risks matter

Q : Which department should be leased

Q : What amount of intra-entity inventory profit must deferred

Q : Diversifiable and non-diversifiable risk

Q : Compute earnings per share-stock issue

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Why does assumption of independence of risks matter

Reference No:- TGS051596

Recent Questions Asked Microeconomics

Q : How do i get prepaid insurance and insurance expense

Q : Why gross domestic productis criticised-measure of economic

Q : What are cash equivalents

Q : Lockboxes and collections

Q : Why does assumption of independence of risks matter

Q : Which department should be leased

Q : What amount of intra-entity inventory profit must deferred

Q : Diversifiable and non-diversifiable risk

Q : Compute earnings per share-stock issue

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