1.(30 pts) Consider a portfolio which consists of single risky asset. The return of the asset is normally distributed with annual mean return 6% annual standard deviation 16%. The value of portfolio today is $70 million. Suppose that the time horizon is one month: a) What is the probability that the end of one month portfolio value is less than $50 million? b) Calculate Value at Risk (VaR) at 95% con- fidence level.c) Calculate Value at Risk (VaR) with 98% confidence level. 1.(30 pts) Consider a portfolio which consists of single risky asset. The return of the asset is normally distributed with annual mean return 6% annual standard deviation 16%. The value of portfolio today is $70 million. Suppose that the time horizon is one month: a) What is the probability that the end of one month portfolio value is less than $50 million? b) Calculate Value at Risk (VaR) at 95% con- fidence level.c) Calculate Value at Risk (VaR) with 98% confidence level