1. Calculate the 5% 10day VaR for a portfolio with value $50m which is expected to return the discount rate with volatility 15%. Assume the discounted returns are normal and i.i.d. Hint: The information given implies that discounted 10day returns are NID(0, 02) with 0 = 0.15 X1/(10/250)= 0.15/5 2 0.03