Question: Please see question 2. How do I get it? here is the formual : Loading = Actual premium PV[E(Loss)] 1. Assume that a business owner

Please see question 2. How do I get it? here is the formual : Loading = Actual premium PV[E(Loss)]

1. Assume that a business owner has the following loss distribution: Loss Probability 500,000 0.05 100,000 0.10 0 0.85 1. What is the standard deviation of the above loss distribution? 2. An insurance policy insures the above loss distribution with a deductible of $50,000. What is the loading of the insurance policy

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