Question: Find the value at risk ( VaR ) for an investment of $ 1 0 0 , 0 0 0 at 3 % . (

Find the value at risk(VaR) for an investment of $100,000 at 3%.(That is, find out how low the value of this investment could be if the worst 3% of outcomes are ruled out.) The investment is expected to grow during the year by 8% with SD 20%. Assume a normal model for the change in value. The value at risk(VaR) for an investment of $100,000 at 3% is

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!