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The Alpha bank has a stock portfolio with a market value of $5 million. The portfolio approximates the market portfolio, whose standard deviation of returns

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The Alpha bank has a stock portfolio with a market value of $5 million. The portfolio approximates the market portfolio, whose standard deviation of returns has been estimated as 1 %. Calculate the DEAR for this stock portfolio (define adverse market circumstances as the 5% worst case) (please round off decimals)

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