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Suppose a financial institution holds a well diversified 40,780,000 position in stocks. The variance of this position in relation to the overall S&P is equal

Suppose a financial institution holds a well diversified 40,780,000 position in stocks. The variance of this position in relation to the overall S&P is equal to 1.95. Over the past year the average daily variation of the S&P is 168 basis points with a standard deviation of 88 basis points.

1)Determine the stock value change that corresponds to a 90% probability that no value changes will exceed this value.

Group of answer choices

0.028152

0.03396

0.0389364

0.0510604

2)Determine the daily earnings at risk with a 90% probability.

Group of answer choices

$1,181,294.36

$1,433,572.94

$1,587,826.39

$2,082,243.11

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