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(a) Find the value at risk (VaR) for an investment of $100,000 at 2%. (That is, find out how low the value of this investment

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(a) Find the value at risk (VaR) for an investment of $100,000 at 2%. (That is, find out how low the value of this investment could be if the worst 2% of outcomes are ruled out.) The investment is expected to grow during the year by 12% with SD 24%. Assume a normal model for the change in value. (b) To reduce the VaR to $24,000, how much more expected growth would be necessary? Assume that the SD of the growth remains 24%. (a) The value at risk (VaR) for an investment of $100,000 at 2% is $ (Round to the nearest thousand dollars as needed.)

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