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The expected annual return for a portfolio is 8%. The annual standard deviation is 15%. The portfolio has assets valued at $20 million. Which of
The expected annual return for a portfolio is 8%. The annual standard deviation is 15%. The portfolio has assets valued at $20 million. Which of the following is the correct interpretation of the 5% VaR for this portfolio assuming returns are Normally distributed? O There is a 16.675% probability that investors will realise a loss There is a 5% probability that the annual loss will exceed $3.335 million O There is a 5% probability that investors will lose exactly $1.550 million There is a 5% probability that investors will lose exactly $3.335 million There is a 5% probability that the annual loss will exceed $1.550 million
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