1. A portfolio has an expected return of 10% and a standard deviation of 20%. Assume normal distribution, what is Value at Risk (VaR) at 5% for this stock?

A. -40.21%

B. -32.25%

C. -22.90%

D. -28.32%

2. An investor buys $10,000 worth of a stock priced at $50 per share using 50% initial margin. The broker charges 10% on the margin loan and requires a 30% maintenance margin. In one year the investor gets a margin call. At the time of the margin call the stock's price must have been ____.

A. $33.15

B. $30.45

C. $40.00

D. $39.29