We will begin class on Tuesday by going over the solutions for the Insurance Economics Class Problem which I handed out on Thursday (also available at http://fin4335.garven.com/spring2023/Insurance_Economics_Class_Problem.pdf).
Since we didn’t get very far on Thursday’s class problem, I decided to turn it into an extra credit problem set for Finance 4335. It will be due at the beginning of class on Tuesday, and the grade you earn will replace your lowest problem set grade in Finance 4335 (that is, if your extra credit grade is higher than your lowest problem set grade).
As I promised on Thursday, I also now provide some helpful hints for the Insurance Economics Class Problem in the PDF file linked below (Insurance_Economics_Class_Problem_Solutions (Helpful Hints). This class problem is primarily based on the “Demand for Insurance: Full vs. Partial Coverage” reading that was assigned for last Thursday’s class meeting.