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The annual return distributions (distribution, mean and variance) for stocks X and Y are specified as r x ~N( 0.10, 0.04) r y ~N( 0.15,

The annual return distributions (distribution, mean and variance) for stocks X and Y are specified as

rx~N(0.10, 0.04)

ry~N(0.15, 0.09)

a. With the bare minimum of calculations (try to do them in your head), outline which stock will have the lower 1-year value-at-risk (VaR) at the 95% and 99% levels.

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