answer all parts of question

4. A bank invests $18 million in a stock fund and $32 million in a bond fund. Use the following information, The volatility of the stock fund is 25% per annum. The volatility of the bond fund is 15% per annum The correlation between the stock fund and the bond fund is -0.44. Assume that the VaR follows the normal distribution. a) Calculate 1-day 99% VaR of the portfolio. (5 pts) b) Calculate 10-day 99% VaR of the portfolio. (5pts) c) What is the minimum amount of capital required by the Basel committee? (5 pts) d) Calculate the diversification benefit. (7 pts)