A financial analyst is considering to model the monthly log volatility (V) of a portfolio as either V~N(0, 4) or V ~ t2 . (i) [6 marks] Calculate the one-month 0.5% Value-at-Risk (VaR), 1% VaR, and 5% VaR for V under these two assumptions. (ii) [1 mark] What is the distribution of the ordinary volatility, given the assumption that V~N(0, 4)? (iii) [2 mark] Using the same assumption V~N(0, 4), calculate the probability that the ordinary volatility is greater than 0%. (iv) [1 mark] Given your finding in (iii), comment on the appropriateness of the assumption under practical circumstance.