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You are evaluating a stock for a client's portfolio and would like to estimate a measure of its downside risk ower the next month. The
You are evaluating a stock for a client's portfolio and would like to estimate a measure of its downside risk ower the next month. The average monthly return for the stock over the past 109 months is 0.77% with a standard deviation of 4.56%. Caiculate the monthly value at risk, based on the variancecovariance approach, of a $5,000 position in the stock (assume the stocks returns are normal and a 95% level of confidence is desired), Round to 2
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