Wang, Shaun S. - International Actuarial Association / Actuarial Studies … - 2002
primary insurance business and
excess-of-loss reinsurance when calculating fair values of liabilities.
PART ONE. THE … (e.g., one year), a key concept in financial economics is the market
price of risk:
2i _ E\[Ri\]- r
17 i
In asset … liabilities, the underwriting beta by line of business has been dif-
ficult to estimate.
Option Pricing Theory
Besides CAPM …