Suppose Fewa Life Insurance Company, a hypothetical insurance company has a policy amount of Rs 600,000 for each policy holder. The one year survival probability for each policyholder is 99 percent…

Suppose Fewa Life Insurance Company, a hypothetical insurance company has a policy amount of Rs 600,000 for each policy holder. The one year survival probability for each policyholder is 99 percent i.e. (p = 0.99), and there are 1,000 policies (n = 1,000). Thus the life insurance company has 1,000 independent and identical policies, each with a 1 percent probability of paying Rs 600,000. For simplicity assume that the insurance company has no other income or expenses. If each policy pays a premium of Rs 9,000. You are required to compute: a. Expected net revenue per policy. b. Total expected net revenue. c. Standard deviation for single life insurance policy. d. Standard deviation of the entire portfolio.