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Consider a portfolio that has $2,200,000.00 in shares of Starbucks Corporation (SBUX) stock. Assume that the estimated volatility of SBUX is 14% per day. Also,

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Consider a portfolio that has $2,200,000.00 in shares of Starbucks Corporation (SBUX) stock. Assume that the estimated volatility of SBUX is 14% per day. Also, consider another portfolio consisting of $1,100,000.00 dollars position in Facebook (FB) stock, and suppose the daily volatility of FB is 7%. (a) Find the one-year 93% VaR of portfolio (SBUX) using the model-building approach. (b) Find the one-year 93% VaR of portfolio (FB) using the model-building approach. (C) Calculate the diversification benefits for a consolidated portfolio, if Starbucks and Facebook shares have a correlation of 0.22. Consider a portfolio that has $2,200,000.00 in shares of Starbucks Corporation (SBUX) stock. Assume that the estimated volatility of SBUX is 14% per day. Also, consider another portfolio consisting of $1,100,000.00 dollars position in Facebook (FB) stock, and suppose the daily volatility of FB is 7%. (a) Find the one-year 93% VaR of portfolio (SBUX) using the model-building approach. (b) Find the one-year 93% VaR of portfolio (FB) using the model-building approach. (C) Calculate the diversification benefits for a consolidated portfolio, if Starbucks and Facebook shares have a correlation of 0.22

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