Question 4 James has seen the stock market turmoil sparked by coronavirus and decided to put his money in the safe haven investment. As his investment adviser, you have told him Don't put all your eggs in one basket". Thus he is considering investing in a portfolio consists of a $40,000 investment in Gold and a $60,000 investment in Silver. a. What is the daily volatility for gold and silver? (2 marks) b. What is the 10-day 99.7% value at risk for the portfolio? (5 marks) c. By how much does diversification reduce the VaR? (Hint: Use the daily price data to calculate the daily volatility of gold and silver, respectively. Also, calculate the correlation of coefficient between their returns.) Question 4 James has seen the stock market turmoil sparked by coronavirus and decided to put his money in the safe haven investment. As his investment adviser, you have told him Don't put all your eggs in one basket". Thus he is considering investing in a portfolio consists of a $40,000 investment in Gold and a $60,000 investment in Silver. a. What is the daily volatility for gold and silver? (2 marks) b. What is the 10-day 99.7% value at risk for the portfolio? (5 marks) c. By how much does diversification reduce the VaR? (Hint: Use the daily price data to calculate the daily volatility of gold and silver, respectively. Also, calculate the correlation of coefficient between their returns.)