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Suppose a bank holds a $2 million trading position in stocks that has a beta 1.8. Suppose that the daily changes in returns for the

Suppose a bank holds a $2 million trading position in stocks that has a beta 1.8. Suppose that the daily changes in returns for the portfolio have a mean 0 and standard deviation 1.5%. Determine the bank's DEAR for this equity position using a 99 percent confidence level.

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