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Accounting Can u plz solve all Mr. Fazli is handling a portfolio has 5 days 98% VAR is $5M. The recommended multiplier (K) for capital
Accounting Can u plz solve all Mr. Fazli is handling a portfolio has 5 days 98% VAR is $5M. The recommended multiplier (K) for capital allocation was increase from 2 to 2.5 as a part of the restructuring to streamline the market risk policies across the department. Moreover, the streamline comprises the change of 97.5% VAR to 99% VAR. a) Compute the capital should be allocated before streamline. b) Compute the VAR for 99% confidence level for 5 days.
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