Quantum Technology is an Exchange Traded Fund (ETF) closely following the performance of several indices in the information technology industries. Monthly portfolio rates of return for the past 38 month are provided in the attached excel sheet. You are asked to use the VaR approach to provide estimates of the next month?s worst possible rates of return both with 95% and 99% confidence levels.

Quantum Fund 0.0765 -0.0595 0.3315 -0.034 0.0765 0.051 -0.085 -0.034 0 -0.0085 -0.0255 0.119 0 -0.034 0.0085 0.0255 -0.0425 -0.0425 0 0.034 0.0595 -0.0765 0.0255 0.051 0 -0.0765 -0.0255 0.0085 0 -0.0085 0 0 0.017 0.0255 0.0425 0.034 -0.0085 0.0935