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Oksana_A [137]
3 years ago
11

Suppose that the stock return follows a normal distribution with mean 20% and standard deviation 40%. What is the 5% VaR (value-

at-risk) for this stock
Business
1 answer:
xeze [42]3 years ago
8 0

Answer:

The 5% VaR (value-at-risk) for this stock 0.858

Explanation:

Value at risk determines the value of the investment at risk of loss. It shows how much of the investment might lose in the given market conditions.

Now deter,ine the value at risk formula

Var = Mean + Standard Deviation x Z score value

Where

Mean = 20%

Standard Deviation = 40%

Z score value = Z Score at significance 5% = 1.645

Placing values in the formula

Var = 20% + 40% x 1.645

Var = 0.2 + 0.4 x 1.645

Var = 0.2 + 0.658

Var = 0.858

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Low unemployment rates are often: A. an indicator that finding a job is extremely difficult. B. associated with an ability to fi
lakkis [162]

Answer:

The correct answer is letter "B": associated with an ability to find a job with relative ease.

Explanation:

Unemployment is the state in which an individual who is able and willing to join the workforce cannot find a job even if that individual is constantly looking for opportunities.  

<em>High unemployment rates are typically seen during recessions while the unemployment of a country tends to be low during economic growth. In the last scenario, mainly private investment helps to find a job to be relatively easy.</em>

7 0
2 years ago
A certificate of ownership in a corporation is called
Oxana [17]
Referred to as a stock certificate, hope this helped!
8 0
2 years ago
Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then in the
eduard

Answer:

the answer is  d

Explanation:

Other things the same, if workers and firms expected prices to rise by 2 percent but instead they rise by 3 percent, then in the short run employment and production falls.

because workers and firms does not prepared for this change,for one hand workers  will  percieve minor wages and they prefer   not work  ,as a consequence the production falls because the firm does not have enough people t acomplish the production.

4 0
3 years ago
Question 13 (5 points)
ANTONII [103]

Answer:

Improved education is the key to economic development.

Explanation:

What is development without education, then we will just go back to the Savage civilization, education is fundamental in our professional and personal life, it deals with everything. Like industrialization, cooking, economic development and everything else. So for sustainable development for a developed or developing country one needs education to become skilled and help in the development of ones country

4 0
2 years ago
The standard deviations of individual stocks are generally higher than the standard deviation of the market portfolio because th
Mila [183]

Answer: Diversifies risk

Explanation:

The main purpose of having a portfolio is to be able to diversify risk so that a total loss is not made if things do not go well. As such, well diversified portfolios are able to reduce their unsystematic risk.

Individual stock on the other hand, cannot be diversified and so have unsystematic risk which makes their standard deviations(risk) higher.  

6 0
3 years ago
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