Name: EKU ID: RMI 378 Excel Assignment 1 - VaR Calculation 20 Points Due by the end of Wednesday, October 16, 2024 Submit both Word and Excel to Blackboard 1. You are the ABC company's financial manager. You consider investing money to buy the stock of Meta Platforms (META, facebook's parent company). You want to quantitatively measure the financial risk associated with this investment by calculating the Value-at-Risk (VaR). You consider investing $50,000, which means your initial portfolio value is $50,000. The historical daily stock price data of META for 2023 are provided in the Excel file on Blackboard. You want to use the mean and standard deviation of the historical daily return to predict your future investment return using a Monte Carlo Simulation. Work in Excel: Follow the steps of the in-class practice to calculate the Vak values for your investment portfolio. First, simulate the portfolio value for one month (21 trading days). Calculate the Gain/Loss after one month. Next, apply Monte Carlo Simulation to the one-month Gain/Loss with 1,000 iterations. Calculate mean, minimum, maximum, 95% VaR, and 99% VaR of your simulated Gain/Loss for one month. [15 points, Excel] Bonus: Plot the simulated Gain/Loss on a Histogram chart and show the positions of the 95% and 99% VaR values that you obtained. [5 points, Excel] Based on your work in Excel, answer the following questions in the Word document: a) Explain the meaning of the 95% VaR and 99% VaR values that you obtained. [2 points] This question asks you to explain the values in YOUR WORK, not the definition of VaR! b) Look at the magnitude of the 95% VaR and 99% VaR values you obtained. Whose magnitude is larger (i.e., a larger loss)? Why?[3 points]