Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Feb 21, 2024

You calculated that the average return of your portfolio is 4% and the standard deviation is 16%, what is the value at risk (VaR) at

You calculated that the average return of your portfolio is 4% and the standard deviation is 16%, what is the value at risk (VaR) at 5% for your portfolio?

Step by Step Solution

★★★★★

3.41 Rating (157 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the Value at Risk VaR at 5 for your portfoli... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Corporate Finance

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

5th Edition

0135811600, 978-0135811603

More Books

Students also viewed these Finance questions

Question

1/6 Evaluate 16 1-9x2 dx

Answered: 1 week ago

Question

★★★★★

Consider two hypothetical stocks, X and Y. The expected return on stock X is equal to 9% and the expected return on stock Y is equal to 15%. Standard deviation of stock X and Y are 19% and 27%,...

Answered: 1 week ago

Question

★★★★★

Pepsi or Coca-Cola The estimation of company betas is normally brushed over in many introductory finance texts. This often leads students to view beta as some magical number and not until later...

Answered: 1 week ago

Question

★★★★★

Sherene Nili manages a company that produces wedding gowns. She produces both a custom product that is made to order and a standard product that is sold in bridal salons. Her accountant prepared the...

Answered: 1 week ago

Question

★★★★★

What is the difference between dividends and interest expense?

Answered: 1 week ago

Question

★★★★★

What does the production volume variance tell managers?

Answered: 1 week ago

Question

★★★★★

What are the assumptions required of a multiple regression model?

Answered: 1 week ago

Question

★★★★★

Presented below are the financial statements of Rajesh Company Ltd. RAJESH COMPANY LTD. Income Statement For the Year Ended December 31, 2017 Sales...

Answered: 1 week ago

Question

★★★★★

Suppose you have a wall - sized display. Of the following type of menus, which type would be best to select a particular pen out of three possible choices? Fisheye menu. Pull - down menu. Pop - up...

Answered: 1 week ago

Question

★★★★★

A mixture that contains 40% by mole n-heptane in n-decane is to be separated in a series of flush separators until a stream is obtained that contains at least 95% n-heptane. Determine the number of...

Answered: 1 week ago

Question

★★★★★

Why banks are established as corporation? What are the role of the regulatory bodies in bank organization Why banks are established as corporation? What ere the rote of the regulatory bodies in bank...

Answered: 1 week ago

Question

★★★★★

Questionnaire links were sent out through WhatsApp to study the impact of the use of nutrition apps (N-App) and fitness apps (F-App) on women's BMI and depression levels. Data were then collected and...

Answered: 1 week ago

Question

★★★★★

In the realm of statistical analysis, measures of central tendency and variation play a crucial role in understanding and summarizing datasets. Central tendency indicators, such as mean, median, and...

Answered: 1 week ago

Question

★★★★★

Please, answer Question #1. Thank you so much!! The National Vital Statistics Reports for November 2011 states that the U.S. Cesarean delivery rate for 2010 was about 32.8%. Cesarean delivery is...

Answered: 1 week ago

Question

★★★★★

A public opinion poll surveyed a simple random sample of 550 voters in Oregon. The respondents were asked which political party they identified with most and were categorized by residence. Results...

Answered: 1 week ago

Question

★★★★★

36. Stock of semi-finished goods is a Ans:1. Fixed capital 2. Working capital 3. Liquid capital 4. Watered capital

Answered: 1 week ago

Question

★★★★★

Q4: Machines that have the following costs are under consideration for a robotized welding process. Using an interest rate of 10% per year, determine which alternative should be selected on the basis...

Answered: 1 week ago

Question

★★★★★

At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a seven-year operating lease agreement. The contract calls for quarterly rent payments of $25,000 each....

Answered: 1 week ago

Question

★★★★★

You have just been hired by Intel in its finance division. Your first assignment is to determine the net cash flows and NPV of a proposed new generation of mobile chips. Capital expenditures to...

Answered: 1 week ago

Question

★★★★★

What is the financial cycle?

Answered: 1 week ago

Question

★★★★★

Suppose the risk-free return is 4% and the market portfolio has an expected return of 10% and a standard deviation of 16%. Johnson & Johnson Corporation stock has a beta of 0.75. What is its expected...

Answered: 1 week ago

Question

★★★★★

A population has a proportion equal to 0.30. Calculate the following probabilities with n 100: a. P(p 0.35) b. P(p 0.40) c. P(0.25 p 0.40) d. P(p 0.27).

Answered: 1 week ago

Question

★★★★★

If a random sample of 200 items is taken from a population in which the proportion of items having a desired attribute is p 0.30, what is the probability that the proportion of successes in the...

Answered: 1 week ago

Question

★★★★★

Given a population where the probability of a success is p 0.40, if a sample of 1,000 is taken, a. Calculate the probability the proportion of successes in the sample will be less than 0.42. b. What...

Answered: 1 week ago

Previous Question Next Question