Attempts Keep the Highest / 2 6. Value at risk measurement Suppose that the standard deviation of daily returns for a stock in the past quarter is 1.7 percent, and that the expected daily return of the stock is 0.02 percent. Using a 98 percent confidence interval, if the daily returns are normally distributed, the lower boundary is approximately 2.326 standard deviations away from the expected outcome. Using the value-at-risk method, the maximum percentage one-day loss based on a 98 percent confidence level is: -4.052 percent O -3.934 percent -3.777 percent -3.501 percent Suppose an investor has $17 million invested in that stock. The maximum one-day loss is estimated to be: -$568,463 -$615,278 -$668,780 O -$702,219 Grade It Now Save & Continue