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Assume that the P&L distribution of a liquid asset is i.i.d. normally distributed. The position has a one-day VAR at the 95% confidence level of

Assume that the P&L distribution of a liquid asset is i.i.d. normally distributed. The position has a one-day VAR at the 95% confidence level of $100,000. Estimate the 10-day VAR of the same position at the 99% confidence level.

$1,000,000

$450,000

$320,000

$220,000

DO NOT COPY FROM CHEGG I NEED A FULL EXPLANATION

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