Business, 21.01.2020 23:31 westball101
You are concerned about the risk that a hurricane poses to your corporate headquarters in south florida. the building itself is valued at $15 million. after consulting with the national weather service, you determine that there is a 10 percent likelihood that a hurricane will strike over the course of a year. you hired a team of architects and engineers who determined that the average hurricane would destroy approximately 50 percent of the building. what is the annualized loss expectancy (ale)?
a. $750,000
b. $1.5 million
c. $7.5 million
d. $15 million
Answers: 1
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