Simple VaR

Use the table below at the given level of accuracy:

Critical values for VaR calculations.

	z
10%	1.282
5	1.645
1	2.326

A life insurance company has a stock portfolio with a current market value of $65,000,000 and a price change standard deviation of 7% per year. Assuming that the price change follows a normal distribution, what is the 95% value at risk during the next year?

$

Round your answer to the dollar. Ignore the negative sign.