Question: An analyst is estimating the aggregate DEAR (daily earning at risk) of a banks stock portfolio. The market value of this well-diversified portfolio is $677546,

An analyst is estimating the aggregate DEAR (daily earning at risk) of a banks stock portfolio. The market value of this well-diversified portfolio is $677546, with a daily standard deviation of 5.42 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.

a. $85565

b. $36356

c. $367

d. $856

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