ABC fund limits the risk of its stock portfolio based on the level of VaR (value at risk). The fund filters out all stocks with 5% VaR below -35%.

If there is a stock with an annual expected return of 14% and a standard deviation of 26%, will the fund consider buying this stock?

Yes, 5% VaR of this stock is positive.

No, 5% VaR of this stock is negative.

Yes, 5% VaR of this stock is higher than -35%.

No, 5% VaR of this stock is lower than -35%