Question: PlZ solve I Body Text 1 Heading 1 1 Heading 2 1 List Para... ,,, AA- , Styles Paragraph Question 2 On Tuesday morning (before

PlZ solve I Body Text 1 Heading 1 1 Heading 2 1 PlZ solve

I Body Text 1 Heading 1 1 Heading 2 1 List Para... ,,, AA- , Styles Paragraph Question 2 On Tuesday morning (before opening of the capital market) an investor, while going through his bank statement, has observed that an amount of 7 lakhs is lying in his bank account. This amount is available for use from Tuesday till Friday. The Bank requires a minimum balance of 1,000 all the time. The investor desires to make a maximum possible investment where Value at Risk (VaR) should not exceed the balance lying in his bank account. The standard deviation of market price of the security is 1.5 per cent per day. The required confidence level is 99 per cent. .09 Standard Normal Probabilities .07 .08 .05 .06 .03 .04 02 .9890 .9887 .01 .00 .9884 .9881 z 9878 .9875 N .9916 .9871 .9913 9868 .9911 9864 .9861 .9909 2.2 .9906 .9904 .9936 .9901 9934 9998 .9932 .9896 .9931 2.3 .9893 .9929 9925 .9923 .9922 .9920 2.4 .9918 You are required to determine the maximum possible investment

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