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(6p) The returns for a portfolio of a financial institution (FI) are given below. Return 0.04 -0.02 Time 0.05 -0.05 10.08 0.06 0.05 10.04 10.08

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(6p) The returns for a portfolio of a financial institution (FI) are given below. Return 0.04 -0.02 Time 0.05 -0.05 10.08 0.06 0.05 10.04 10.08 0.06 11 3 4 5 7 12 110 8. What is the probability that the return will be at least 10% based on a normal distribution b. Assume that the Fl has invested $5000000 in the portfolio Determine the daily earnings at SK (DEAR or VaR) with the confidence level Explain what this value mean How long will it take until bankruptcy takes place? Prove your answer. (6p) The returns for a portfolio of a financial institution (FI) are given below. Return 0.04 -0.02 Time 0.05 -0.05 10.08 0.06 0.05 10.04 10.08 0.06 11 3 4 5 7 12 110 8. What is the probability that the return will be at least 10% based on a normal distribution b. Assume that the Fl has invested $5000000 in the portfolio Determine the daily earnings at SK (DEAR or VaR) with the confidence level Explain what this value mean How long will it take until bankruptcy takes place? Prove your

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