Accounting scenario : your porftolio A with the stocks,(tesla,afterpay), and portfolio b with the stocks (microsoft and amazon), discuss the risk profile of your portfolios. On Friday, 21st May2021, use dailystock prices since 1st June 2017 to calculate the VaR. The discussion should include the following points: 1, Calculating and then explain the five-day 99%-Value at Risk of your portfolio A using model-building approach 2. Calculate and discussion of the five-day 99%-Value at Risk of your portfolio B using a historical simulation approach 3. Explain the performance of VaR based on your calculation approaches in (a) and (b), VaR results and actual five-day returns(Monday, 24th May2021–Friday, 28th May2021)

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1 VaR for Portfolio A using ModelBuilding Approach To calculate the VaR for Portfolio A we first need to calculate the expected return and volatility for the portfolio We can do this using the followi... View the full answer