1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
What factors of production will go into making the item
lukranit [14]
Production Capital, Human Capital, Resource Capital, and Intellectual Capital... 
Let me know if you need to know what those are :)
6 0
2 years ago
This activity requires that you develop a leadership case of your own. Specifically, you'll be expected to develop (i.e., "make
tester [92]

Answer:

sry I just wanted the points I'm in middle school so I don't know this stuff either but can you give free brainlyest I'm soo close to my next rank I'd really appreciate it if you would

6 0
2 years ago
Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insuran
raketka [301]

Answer:

$8,200

Explanation:

The amount of asset that is not covered under the insurance policy would not be claimable so if the amount of insurance policy that covers jewelry of worth $1000 and silverware of worth $2,500 then the total claimable insurance would be $3500 ($1000 for both Jewelry and $2500 for silverware).

The jewelry stolen is worth $5200 and out of it $4200 is not claimable because $1000 of this is covered under the insurance policy. Likewise the silverware worth of $6500 has been stolen of which $4000 is not claimable because $2500 of this is covered under the insurance policy.

The claim that would be not covered under the insurance policy would be:

Non claimable insurance amount = ($5,200 - $1,000) + ($6,500 - $2,500)

= $8,200

7 0
2 years ago
When creating a new quickbooks data file for an existing company, opening balances are added when you:?
Vesna [10]

The opening balance are being added when creating a new quick books data file for the existing company when there is a presence of having chart of accounts that are provided to be customized that made opening balances to be added.

<span />
4 0
3 years ago
Sarasota Company has a factory machine with a book value of $86,300 and a remaining useful life of 7 years. It can be sold for $
RUDIKE [14]

Answer:

See the explanation for answer

Explanation:

Analysis showing whether the old machine should be retained or replaced is as prepared below:

                                                     Retain        Replace            Net Income

                                              Equipment     Equipment      Increase(Decrease)                            

Variable manufacturing costs 43,63,100 32,32,600 11,30,500

New machine costs                     0    3,59,000 -3,59,000

Sell old machine                             0          -33,500          33,500

Total                                       43,63,100   35,58,100   8,05,000

The old factory machine should be replaced as there is increase in net income by 805,000 when old machine is replaced.

4 0
3 years ago
Other questions:
  • Someone may choose to own a car instead of leasing because
    10·2 answers
  • A common cost that should not be assigned to a particular product on a segmented income statement is:
    8·1 answer
  • if real gdp in 1995 was $4053.7 billion and nominal gdp in 1995 was $4220.3 billion, what was the value of the gdp deflator in 1
    6·1 answer
  • Given the thinker / leadership theory / decision-making paradigm that you've adopted and defended thus far, compose an essay, 3-
    9·1 answer
  • Bonita's Braidworks hires workers to braid hair. The store sells the service for $25 per customer. The marginal revenue product
    14·1 answer
  • Wallace's Wrench Company manufactures socket wrenches.
    13·1 answer
  • Owner's withdrawals:______.
    7·1 answer
  • Giving consumers product brochures to take home with them helps with ________, since many of them will not remember the details
    12·1 answer
  • What the Business ethics<br> About USA
    9·1 answer
  • The Ingraham Corporation has $1,000 par value bonds outstanding. The bonds have an annual coupon rate of 8.90 percent and an ann
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!