According to the information provided in the search results, the VaR for a portfolio consisting of the two independent projects at a 95% confidence level is $20 million. The key points are: For a single project, the VaR at 95% confidence level is $10 million, since there is a 4% chance of a $10 million loss. When combining two independent projects into a portfolio, the loss distributions are convolved or combined. At the 95th percentile of the convolved loss distribution for the portfolio of two projects, the loss does not exceed $20 million

Answer rating: 100% (QA)

The Value at Risk VaR for a portfolio consisting of two independent projects at a 95 confidence leve... View the full answer