A portfolio has a 95% certainty that it won't lose more than $50,000 in a given day.

Fantastic news! We've Found the answer you've been seeking!

Question:

A portfolio has a 95% certainty that it won't lose more than $50,000 in a given day. On the big loss days, there is a 30% chance the portfolio will lose $50,000 and a 70% chance it will lose $75,000. What is the portfolio's expected shortfall?

Related Book For answer-question

Applied Statistics in Business and Economics

ISBN: 978-0073521480

4th edition

Authors: David Doane, Lori Seward

See More Books

Posted Date: Aug 29, 2020 08:45 PM

See More Questions

There is a 30% chance that the mother is thalassemia minor. If she is a minor, then each son has again a 30% chance of having thalassemia independently. If the queen is not a thalassemia minor, then...
The balanced equation for the dissolving of magnesium nitrate in water is Mg(NO),(s)- Mg(aq) + 2NO, (aq) (a) How many Mg+ (aq) and NO3(aq) ions form for each Mg(NO), formula unit that dissolves? (b)...
George and KC have been working jobs that pay $20,000 and $30,000/year, respectively. They are trying to decide whether to quit their jobs and jointly open up a taco stand on the beach, which they...
Let a function f be the line graph connecting the data points (1, 2), (4,9), and (6,3). (a) Write the formula for a piecewise-linear function f that passes through these data points whose domain is 1...
In the course of various qualitative analysis procedures, the following mixtures are encountered: (a) Zn2+ and, Cd2+ (b) Cr (OH)3 and Fe (OH)3, (c) Mg2+ and K+, (d) Ag+ andMn2+. Suggest how each...
A finishing process packages assemblies into boxes. You have noticed variability in the boxes and desire to improve the process to fix the problem because some products fit too tightly into the boxes...
In several accounting situations it seems like there is more than one acceptable way to account for a transaction. Is this a significant issue? Are there situations where it can lead to ethical...
You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $5,000 at the end of the first year, and you anticipate that your annual savings will...
1 2 3 How many time will the following print statement execute? for i in range (4): for j in range (8) :) print (f" ({i}, {j})")
A cylindrical specimen of aluminum having a diameter of 0.505 in. (12.8 mm) and a gauge length of 2.000 in. (50.800 mm) is pulled in tension. Use the load?elongation characteristics tabulated below...
White Mountain Supply Company purchases warehouse shelving for $18,300. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 8 years and have a...
Makers Co. decided to refinance its notes payable of $520,000 due on February 28, year 5. On January 30, year 5, before the year 4 financial statements were issued, Makers issued one year bonds for...
A two year bond that yields 10% has a coupon rate of 10%. What is the price this bond will sell for? (Hint you do not need to do any math here) What is the dollar value of the coupon that is paid?...
If you were to invest $2,000 each year for the next 35 years, then what rate of return is required for your investment to be worth $2,000,000? (Assume the first payment will begin one year from...
Choose a company and calculate key financial ratios, such as ROE (Return on Equity), ROA (Return on Assets), and current ratio. Compare these ratios to industry benchmarks and analyze their...
Investigate a company's budgeting process and analyze the variance between budgeted and actual financial performance. Discuss how the company can use variance analysis to improve financial management.
The detailed budgets for baseball pants is presented below. EXHIBIT 5.5 C&C Sports' sales forecast. 1 B D E F G C&C Sports H K M N 2 Sales Forecast 2021 3 4 Jan Feb Mar 5 Baseball pants 38,000 20,000...
Write a paper about medication error system 2016.
An airport gamma ray luggage scanner coupled with a neural net artificial intelligence program can detect a weapon in suitcases with a false positive rate of 2 percent and a false negative rate of 2...
Here are the ages of a random sample of 20 CEOs (chief executive officers) of Fortune 500 U.S. corporations. (a) Find the mean, median, and mode. (b) Discuss advantages and disadvantages of each of...
In trials of an experimental Internet-based method of learning statistics, pre-tests and post- tests were given to two groups: traditional instruction (22 students) and Internet-based (17 students)....
LDDS continued to publicly report increasing profits and sales in the financial statements, which allowed it to acquire more companies with no limit to the growth of its stock price. True/False
LDDS suffered from high fixed costs coupled with a lack of technical knowledge and expertise in optimizing the configuration of circuits, which resulted in high line costs. True/False
WorldCom overstated its sales by holding its books open at the close of a reporting period. True/False

A portfolio has a 95% certainty that it won't lose more than $50,000 in a given day.

Question:

Expert Answer:

Given information A B C 1 chance of loss more than 50000 95 2 On big loss days 3 Case Chance of ... View the full answer

Applied Statistics in Business and Economics

Students also viewed these mathematics questions