Question $3[15\%{\}}^{-}$

Suppose we form a portfolio $Q$ by spending $$1,000$ on buying each stock $A,B,$ and $C$ on the last

day $n.$ Assume that the $1-$day loss distribution of $Q$ is $LN(,{}^2).$

$($a$)$ Compute an reasonable estimate of $$ and $.[$Note that $u$ is the relative change in $100\%]$

$($b$)$ Find the $1-$day $99\%$ VaR of the portfolio $Q$ based on the estimate in part $($a$).$

$($c$)$ Compute the daily change in this portfolio value $Q_n=Q_n-Q_{n-1}$ at day $n.$ Explain your

answ$$r in detail.