Master Outline for Exam 5 - 2004 - Windstream
S = an industry’s std dev of its annual book RORs. G = an avg annual rate of growth in sales. Author further recommended updating the formula after a few yrs and/or reconsider possibly using standard #2 above if it’s deemed more appropriate. G comes from the NY State Ins Dept and was 7.9. But S is harder to calculate. ................
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