BU353 Lecture Notes - Lecture 6: Current Yield
Document Summary
Lecture slides p. 4 examples expected cost calculable loss is fortuitous. Yes, golf course has no control over incident. Yes, if contract controls for length of shutdown. Yes, if contract can specify maximum length of closure can measure average revenues from previous years happening. Yes, know what caused loss, when loss happened property losses are easy to value. & timing is plane crash, cost is function of length of closure, which is observabl e insurable? large number of exposures exist losses are uncorrelat ed. Yes, all buildings are exposed to this loss. Yes, many businesses would have a loss of revenues. Yes, if length of closure can be managed to reduce moral hazard. To a large extent yes, except perhaps for some large unions. No, every crop in area will be impacted. Loss in revenue s due to a strike. No, insurance would greatly impair employer" s desire to bargain in good faith crop loss due to snowsto rm.
