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  3. 2. given the following cumulative distribution of

2. Given the following cumulative distribution of daily stock returns: Return...

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Question

Accounting

2. Given the following cumulative distribution of daily stock returns:

Return Value

Frequency

Actual Cumulative %

Normal Cumulative %

-0.10266

1

0.21%

0.00%

-0.09414

0

0.21%

0.00%

-0.08561

0

0.21%

0.01%

-0.07709

0

0.21%

0.03%

-0.06856

0

0.21%

0.12%

-0.06003

1

0.42%

0.37%

-0.05151

5

1.00%

1.04%

-0.04298

8

3.14%

2.58%

-0.03446

9

5.02%

5.71%

-0.02593

29

11.09%

11.26%

-0.0174

30

17.36%

19.87%

-0.00888

62

30.33%

31.58%

-0.00035

73

45.61%

45.50%

0.008175

71

60.46%

60.01%

0.016701

64

73.85%

73.25%

0.025227

53

84.94%

83.82%

0.033753

31

91.42%

91.21%

0.042279

22

96.03%

95.73%

0.050805

13

98.74%

98.15%

0.059331

2

99.16%

99.29%

0.067857

2

99.58%

99.76%

0.068

2

100.00%

99.76%

What is the Value at Risk (based on the actual cumulative distribution) at the 99% confidence level if my position in the stock is $1,000 and I expect a 5% return?

A. $ 10.15

B. $101.51

C. $51.51

D. $50.00

E. None of the above

Answer & Explanation Solved by verified expert
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