Consider a position consisting of a 100,000 investment in asset A and a 100,000 investment in asset B. Assume that the daily volatilities of both assets are 1% and that the coefficient of correlation between their return is 0.3. Assume that the returns of both assets are normally distributed.

Estimate the 5-day 99% VaR for the portfolio. Include all necessary calculations in your answer.

Explain your answer using a graph.