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4 (20 Marks) The Standard Bank Risk Executive Maharsh Boaz is discussing a case with you in which he outlines that the institution has a
4 (20 Marks) The Standard Bank Risk Executive Maharsh Boaz is discussing a case with you in which he outlines that the institution has a portfolio that consists of a single asset in the Middle East Stock Exchange. The return of the asset is normally distributed with mean return 20% and standard deviation 30%. The value of the portfolio today is US$100 million. He needs to quantify the risk of a potential loss for this portfolio by year end at a 95% confidence level. Critically discuss the method that you will recommend to him and how it should be administered. Your response should make use of relevant examples..use in text citation and harvard style of referencing QUESTION 5 (20 Marks) You are part of a business simulation project where you are tasked with analysing the feasibility of opening a new restaurant in Durban North. Considering this, discuss how a sensitivity analysis can be applied and utilised when assessing the financial feasibility of opening a new restaurant. In addition, describe the key variables that should be incorporated into the sensitivity analysis model to make informed business decisions..use in text citation and harvard style of referencing
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