Keywords: sharesl

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# Optimal Insurance

In this section the optimal insurance is regarded as a special case of optimal investment. Then the expected utility at the end of the next year

|  |  | (15)

where is a probability to get a wealth ,
is an utility function of this wealth .
Here is a vector which components define rates of insurance charges for different objects . Suppose that
and

|  |  | (16)

The product denotes insurance charge of the object ,
is insurance policy of the object ,
is market value of the object ,
, if the object survives,
, otherwise,
is a survival probability of the object .
For example:
,
,
where
.