2Note: the variance is represented by a squared number (i.e. the standard deviation squared). Whole life insuranceAge LivesActuarial ValueSecond Moment55 7,963.680.3114900.14706565 6,752.260.4166400.222551Present value of whole life annuityVariance of whole life annuityPresent value of 10 year term life annuityVariance of 10 year term life annuity Calculate the present value and variance of two life annuities payable continuously in the amountof 40,000 per year.Demographic information:Age55Gender FemaleStatusDisabled RetireeBasis:Interest rate6%Mortality table RPH-2014 Disabled Retiree without mortality improvement.You are given the following values from a life insurance table (actuarial values and secondmoments shown are for whole life insurance payable at the moment of death):

“Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Answered: Whole life insurance Age Lives…

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter7: Distance And Approximation

Section7.3: Least Squares Approximation

Problem 31EQ

See similar textbooks

Similar questions

A portfolio with a beta of 0.7 with market and residual variance of 10, market variance being 196 , the total risk in terms of standard deviation of the fund is a. 10.30 b. 14 c. 10 d. 7
Q3 - Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7Stock X 3% -2% 9% 6% -1% -4% 11%Stock Y 1% -4% 7% 12% 3% -2% -1% Consider a portfolio of 20% stock X and 80% stock Y. What is the (population) variance of portfolio returns? Please round your answer to six decimal places.
Q3 - Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7Stock X 5% 6% -2% -4% 6% 10% 7%Stock Y 1% -3% 6% 3% 12% 7% -5% Consider a portfolio of 40% stock X and 60% stock Y. What is the (population) variance of portfolio returns?Please round your answer to six decimal places.
Shares of company A are sold at $20 per share. Shares of company B are sold at $50 per share. According to a market analyst, company A's expected return is $1 per share with a standard deviation of $0.5. And company B's expected return is $2.50 per share with a standard deviation of $1. In order to maximize the expected return and minimize the risk (standard deviation or variance), which of the following investment is better (1) 100 shares of A (2) 50 shares of A and 20 shares of B (3) 40 shares of B
Suppose that a portfolio consists of two assets A and B whose returns are givenby RA = RM + uA and RB = 2RM + uB, where RM is the market return, which isuncertain, and where uA and uB are uncorrelated shocks with expected value of zeroand variance of 0.01. Suppose RM has expected value of 0.05 and a variance of 0.01. Calculate theexpected return and variance of both assets A and B.
A pharmaceutical company has developed a drug that is expected to reduce hunger. To test the drug, three samples of rats are selected with n = 10 in each sample. The first sample receives the drug every day. The second sample is given the drug once a week, and the third sample receives no drug at all. The dependent variable is the amount of food eaten by each rat over a 1-month period. These data are analyzed by an ANOVA, and the results are reported in the following summary table. (Hint: start with the df column). Source SS df MS Between ___ ___ 15 F = 7.50 Within ___ ___ ___ Total ___ ___
Suppose that index model for Stocks A and B is estimated from excess returns with the following results : Ra 0.04 +0.6Rm+ea , Rb = - 0.04 + 1.3Rm + eb Risk on the market is 30% , R-squared of A is 30%R - squared of B is 40% , security A residual variance is

Recommended textbooks for you

Linear Algebra: A Modern Introduction

Algebra

ISBN:

9781285463247

Author:

David Poole

Publisher:

Cengage Learning

Linear Algebra: A Modern Introduction

Algebra

ISBN:

9781285463247

Author:

David Poole

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

Whole life insurance Age Lives Actuarial Value Second Moment 55 7,963.68 0.311490 0.147065 65 6,752.26 0.416640 0.222551 Present value of whole life annuity Variance of whole life annuity Present value of 10 year term life annuity