with t = 0.5. But the volatility measure t varies from one
business to the other and therefore the actuary should try to … distribution
with expectation 90%, we get Var(U)= (35%) 2. This rather high variance is
typical lbr a reinsurance business or a … comparison, we look at a more stable business, too:
Assume that Va,'(U) = (10%) z, Va,'(Uo) = (5%) 2 and Var(C~./UIU ) = (0 …