1. A stock has an annual return of 16 percent and a standard deviation of 59 percent. What is the smallest expected gain over the next year with a probability of 5 percent?
2. Find the numerical values of liner interpolation. Please show all work. There is not any present value or future value available in the question.
3. How do you reconcile the high level of interest rates in Thailand with the expected change of the baht dollar exchange rate according to PPP?
4. What types of activities are normally classified as off-balance-sheet (OBS) activities?
5. Identify the four characteristics or features of the perils insured against by property-casualty insurance. Rank the features in terms of actuarial predictability and total loss potential.