Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 9. your portfolio of stocks is worth $250,000. the

9. Your portfolio of stocks is worth $250,000. The returns on the portfolio are normally...

60.1K

Verified Solution

Question

Accounting

9. Your portfolio of stocks is worth $250,000. The returns on the portfolio are normally distributed with a standard deviation of 13%. Calculate the VaR of my portfolio with 99% confidence.

A. $17,960

B. $27,960

C. $210,023

D. $75,725

E. None of the above

10. What is the difference between parametric and nonparametric methods for estimating VaR?

A. Parametric methods do not make assumptions concerning the distribution of returns

B. Nonparametric methods assume returns are normally distributed

C. Nonparametric methods use historical data

D. Parametric methods use future data

E. None of the above

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Two competing commercial banks situated in the same region have comparable asset portfolios, but one operates...

Finance
Q

Steve is the director of operations for a diamond company. The company is considering whether to...

Basic Math
Q

9 In Lecture 5 slide 38 we show that K int x 1 x 2...

Calculus
Q

Cheyenne Company purchased a computer for $9,600 on January 1, 2016. Straight-line depreciation is used,...

Accounting
Q

! Required information [The following information applies to the questions displayed below.] Henna Co. produces...

Accounting
Q

HELP! ONLY SOME NUMBERS MISSING! TY :) (QUESTIONS #1 AND #2 ARE DONE, ONLY NEED...

Accounting
Q

Help will thumbs up! Crane, Inc. has 4000 shares of...

Accounting
Q

is closely related to intrinsic motivation: Employees believe that they have the ability and autonomy...

Accounting
Q

Mini's manufacturing has a weekly payroll of $180,000 for a five day work week. Mini...

Accounting
Q

(The following information applies to the questions displayed below.] Sweeten Company had no jobs in...

Accounting
Q

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs...

Accounting
Q

need help on 5 and 6 Question 5 (1 point)...

Finance