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Problem 13-14 Value-at-Risk (VaR) Statistic (LO4, CFA6) a. A stock has an annual return of 12 percent and a standard deviation of 55 percent. What
Problem 13-14 Value-at-Risk (VaR) Statistic (LO4, CFA6)
a. A stock has an annual return of 12 percent and a standard deviation of 55 percent. What is the smallest expected gain over the next year with a probability of 2.5 percent? (Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.)
b. Does this number make sense?
multiple choice
Yes
No
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