Hi, so in Q5(iii) I am following the solution except for from this point onwards and i am probably being dumb Variance of loss portfolio $1,355,969 million: independent events so variances additive Standard deviation of loss portfolio: $1,164,461 Additional standard deviation $122,935 Additional premium required $157,087 Since the market premiums for the two risks are the same, the company should write the hurricane exposure
Hi ActuaryGirl I've trawled through my files and found the attached spreadsheet printout - unchecked - hopefully this may back up the figures above. If you need to know any of the calcs behind the cells, just email me. Ian
