Question: An analyst is estimating the aggregate DEAR (daily earning at risk) of a bank's stock portfolio. The market value of this well-diversified portfolio is $734700,

An analyst is estimating the aggregate DEAR (daily earning at risk) of a bank's stock portfolio. The market value of this well-diversified portfolio is $734700, with a daily standard deviation of 5.7 per cent. Calculate the DEAR of this portfolio, assuming you desire no more than 1% chance that stock market return volatility will be greater than this maximum.

Select one:

a. $97576

b. $976

c. $419

d. $41459

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