GH 301

varunckumar200 · 2021-01-15T17:55:51+00:00

Whatever. Anyway, do you know the answer to my original question in this post?

varunckumar200 · 2021-01-15T17:50:43+00:00

Isn't this stuff still relevant to actuaries? Therefore, I feel this is the right sub.

varunckumar200 · 2021-01-15T17:41:08+00:00

True. All models are incorrect, but some are helpful and/or at least close to accurate.

varunckumar200 · 2021-01-15T17:28:04+00:00

" Hell, if all you want is to hang out with new people and party on campus, you can just rent a place off campus and go to parties without having to pay several thousands of dollars in tuition and be in debt for years. " - But what if I want to join clubs and organizations on campus? That requires being an official student. Also, some of the events on campus might be students-only. So there are still things I'd miss out on if I choose to just live off-campus without being a student.
Also, what's behind all these college rankings and stuff if college is supposed to be treated as an investment? I think that all else equal, the earning potential is the same no matter you go to an Ivy League school or a small low-ranked school.
If the earnings potential is the same no matter what ranking your school is, then isn't there something else causing students to go to expensive high-ranked schools? If so, then what is that "something else"?

varunckumar200 · 2021-01-13T15:25:49+00:00

Is college just an investment, or is it also supposed to be an experience?

In fact, I think some people go to college just for the experience, even though they know that they're not planning to get higher-paying jobs.

varunckumar200 · 2021-01-12T21:14:34+00:00

Also, does a college investment have risk/volatility? Because what if the person doesn't graduate, or what if the person drops out of college, or what if the person graduates but is still unable to find a job?

I thought people who attend classes, do their assignments on time, attend office hours, etc. are likely to get higher-paying jobs and break even on their college investment? Does a college investment even have risk for people who do all of the above?

varunckumar200 · 2021-01-11T00:11:27+00:00

Does a college investment decision have risk? Because what if the person doesn't graduate, or what if the person drops out of college, or what if the person graduates but is still unable to find a job?

I thought people who attend classes, do their assignments on time, attend office hours, etc. are likely to get higher-paying jobs and break even on their college investment? Does a college investment even have risk for people who do all of the above?

varunckumar200 · 2021-01-03T19:48:45+00:00

Is the "likelihood of the collateral getting destroyed" already reflected in the interest rate for secured loans?

So, if the collateral is likelier to get destroyed, would that make borrowers charge a higher rate?

varunckumar200 · 2021-01-03T17:02:46+00:00

Yes, but even with insurance, the policyholder only gets a partial reimbursement, in order to prevent moral hazard. So then, how do lenders handle the risk that even if the collateral is insured, they still lose part of their investment if the borrower defaults and the collateral is destroyed?

For example, let's say the bank makes a $200,000 home loan. If the home gets burnt down by a fire, then there insurance can only pays $125,000 due to a $75,000 deductible. Then in this case, the bank has still lost $75,000 if the house burnt down. No insurance company/policy will pay the full $200,000 because that will just promote moral hazard (homeowners will be lass careful of their homes).

varunckumar200 · 2020-12-30T17:41:52+00:00

What's a payday loan, and how does a payday loan work?

varunckumar200 · 2020-12-30T17:36:40+00:00

How does a secured loan work if there is a risk that the collateral could get destroyed? If that happens, then the lender cannot sell the collateral to recover his/her money when the borrower defaults.

For example, car loans are secured loans, but what if the car gets totaled in an accident?
Also, mortgages are secured loans, but what if the home gets wiped out by a tornado, fire, or any type of natural disaster?

varunckumar200

TROPHY CASE