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Consider $10m invested in a stock. The annual volatility of the rate of return is 25%. Assuming that the return is IID and normally distributed

Consider $10m invested in a stock. The annual volatility of the rate of return is 25%. Assuming that the return is IID and normally distributed with =0.

a. What is the 99% 1-day VAR?

b. What is the 95% 1-day VAR?

c. What is the 95% one-week VAR?

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