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Bumitomo Bank's risk manager has estimated that the DEARs of three of its major assets in its trading portfolio, foreign exchange, equity and bonds, are

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Bumitomo Bank's risk manager has estimated that the DEARs of three of its major assets in its trading portfolio, foreign exchange, equity and bonds, are $125,000, $175,000 and $250,000, respectively. What is the 10-day VAR of Sumitomo's trading portfolio if the correlation between foreign exchange and equity is 0.5, correlation between foreign exchange and bonds is 0.25, and correlation between bonds and equity is assumed to be 0.80 ? $100,000.50.$316,228.25$106,797.82$873,212.38$1,264,911

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