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Q2. (6) We have the following information about the investment of an financial institution. Asset Average return Standard Deviation Amount Invested 5% 15% $ 1500000

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Q2. (6) We have the following information about the investment of an financial institution. Asset Average return Standard Deviation Amount Invested 5% 15% $ 1500000 a. Calculate the value at risk (VaR) for one period in time for this investment at the 95% confidence level. Interpret your result. b. Calculate the VaR for the three periods in time for this investment at the 95% confidence level. Interpret your result. c. How long will it take until bankruptcy takes place? Prove your answer. Provide step-by-step solutions

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