ECON 439 - Risk Management and Insurance

Credits: 4

Theories and practical applications for making risk management and insurance decisions with the goal of increasing individual welfare or business value. Topics include: supply and demand for insurance, costs and benefits of risk, risk aversion and utility maximization, risk identification and measurement, insurance pooling arrangements, diversification and risk management through loss controls, hedging and derivative contracts. Auto, homeowner and life insurance policies are covered. Prerequisites: ECON 360, College-level Statistics, and College-level Calculus (MATH 220 or 224/225). 4 Cr.