Computing one-day value at risk, Basic Statistics

+44 141 628 6080
[email protected]

Computing one-day value at risk

Assignment:

You have invested $10,000 in IFM stock shares and $20,000 in Peculiar Motors stock shares. Compute the one-day value at risk, at 95% level, assuming normally distributed daily returns. Daily volatility is 2% for IFM and 4% for Peculiar Motors, and their correlation is 0.68.

Provide complete and step by step solution for the question and show calculations and use formulas.

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Basic Statistics: Computing one-day value at risk

Reference No:- TGS01975841

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Basic Statistics

Q : What are the si units of torque

Convert 12 fm into Km. Express the answer in scientific notation. What are the SI units of torque?

Q : Agency law and purchase of property for partnership

Sue and Tom are business partners. They have a partnership in which they purchase and renovate homes and apartment buildings.

Q : Computing confidence interval

You have to compute a confidence interval for the expected value of a random variable. Using a standard procedure, you take a random sample of size N = 20.

Q : Describe an information technology system

Describe an information technology system and all of its components. What are the key components to a common information system?

Q : Computing one-day value at risk

Compute the one-day value at risk, at 95% level, assuming normally distributed daily returns. Daily volatility is 2% for IFM and 4% for Peculiar Motors.

Q : Legal risk and opportunity in employment

The following three Legal Encounters involve NewCorp, your employer. You are required to provide a brief answer to the questions asked at the end of encounter.

Q : Determining desired inventory level

You are in charge of component inventory control. Your firm produces end items P1 and P2, which share a common component C.

Q : Advantages and disadvantages of a franchise agreement

Help Liz make a decision by outlining the advantages and disadvantages of a franchise agreement.

Q : Explain how factors change when considering wireless

Explain how these factors change when considering wireless technologies from a personal perspective

1938453

Questions
Asked

3,689

Active Tutors

1411925

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

How are schools important in the struggle for power

Question: How are schools important in the struggle for power and status?

Cases of local communities using modern technology

Question: Cases of local communities using modern technology to preserve and revive their traditions:

Which are forms of media bias

Question: Which of the following are forms of media bias? (Select all that apply)

How code of suburbs differs from the code of street

Q1. Explain how the Code of the Suburbs differs from the Code of the Street? Q2. Explain your general thoughts on the book.

Statement about political systems controlled by men

Multiple Choice Question Identify a true statement about political systems controlled by men. Multiple choice question.

Discuss statements about sociological approaches

Question: Which of the following statements about sociological approaches are true?

How is it rational for the owner of a factory or plantation

How is it rational for the owner of a factory or plantation to work his laborers to death or disability when they can easily be replaced cheaply?