Business, 07.05.2021 22:40 natalie2sheffield

Lonzo is a basketball star at CSUEB and is expected to be drafted in the first round of the NBA draft next year where he will get a salary of $5 million. However, there is a 10% chance he gets injured this year and never gets drafted, missing out on his big payday. He is looking to get insurance, and finds 2 options: AllSportsInsurance is offering an insurance policy that will pay Lonzo $1 million if he gets injured for a premium price of $100,000. BBallInsurance is offering another insurance policy that will pay Lonzo $3 million if he gets injured, but this policy has a premium price of $300,000. If Lonzo is risk-averse he will ..buy the policy from AllSportsInsurancebuy the policy from BBallInsurancebuy either the policy form AllSportsInsurance or BBallInsurancebuy no insurance policyis indifferent between no insurance policy and a policyfrom either AllSportsInsurance or BBallInsurance

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Lonzo is a basketball star at CSUEB and is expected to be drafted in the first round of the NBA draf...

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