6). Suppose that we have bought $50 million of Google shares. The daily volatility of the Google stock is 2%. Changes in the value of the stock are normally distributed. The one-day 99% market risk VaR using the model-building approach is (hint: N(-2.33) = 0.01): $2.33 million $1 million US $2.66 million Depends on yearly volatility of the price of a Google share 7) Suppose your portfolio consists of two investments. The 99% VaR for the first investment is $1 million, whereas the 99% VaR for the second investment is $3 million. The 99% VaR of the portfolio shows that there are benefits to diversification. This means that 99% VaR of the portfolio is: Less than $4 million my 13 W More than $4 million Word Less than $3 million Cannot be determined