The monthly arithmetic returns of an exchange rate for each of the last 200

months have been observed and sorted from the lowest values to the highest values. The 10

smallest values in this sorted data set are:

8.6%,7.2%,5.3%,4.5%,4.1%,2.8%,2.6%,2.1%,1.3%,1.0%.

A firm has a position of $500,000 in this exchange rate. Compute the 5% VaR for this position

using the above data and the non-parametric approach.