27. Jeff is 22 years old, just started his first job, and knows he should start saving for retirement. He wants to divide his investments between stocks
and bonds. Give Jeff specific asset allocation advice (using percents) and
briefly explain why you are suggesting this plan.

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value