Suppose for a one year project all outcome between a loss of 50 million and a gain

Fantastic news! We've Found the answer you've been seeking!

Question:

Suppose for a one year project all outcome between a loss of 50 million and a gain of 50 million are equally likely. What is the VaR at a 95% confidence level?

Related Book For answer-question

Risk Management and Financial Institutions

ISBN: 978-1118955949

4th edition

Authors: Hull John

See More Books

Posted Date: Apr 22, 2024 01:45 AM

See More Questions

Which qualitative and quantitative metrics would be recommended to evaluate compensation initiatives at an organization like Walmart?
Suppose that each of two investments has a 4% chance of a loss of $10 million, a 2% chance of a loss of $1 million, and a 94% chance of a profit of $1 million. They are independent of each other. (a)...
What interest rate is implied by the price of the December ED Futures contract? Calculate a 3/6 Fra rate and 6/12 Fra rates based on the SHIBOR fixings. Assume 91, 182 and 365 days for 3 months, six...
In SSL and TLS, why is there a separate Change Cipher Spec Protocol rather than including a change_cipher_spec message in the Handshake Protocol?
(Appendix 9.B) Recall from Chapter 7 that an increase in im, the nominal interest rate on money, increases the demand for money. To capture that effect, let us replace Eq. (9.B.17) with Md/p- = t0 +...
Tom Brady attempts to kick a field-goal barefoot. He imparts a speed of 32 m/s to a football initially at rest. If the football has a mass of 0.23 kg and the time of contact with the ball is 0.011 s,...
Fong Sai-Yuk Company sells one product. Presented below is information for January for Fong Sai-Yuk Company. Jan. 2 Inventory 100 units at ... $5 each 4 Sale 80 units at ....... $8 each 11 Purchase...
Future Tech present a possible future propulsion-related technology that exists or is in the theoretical phase. Explain what it is, what is currently known about it, and how it might be applied in...
A student was interested in the cigarette smoking habits of college students and collected data from an unbiased random sample of students. The data is summarized in the following table: Males...
Consider whether the shift toward a more integrated and interdependent global economy is a good thing. Discuss the shift from the eyes of the consumer , the worker , the company , and the environment...
What are some tips/strategies people can use to boost their savings and their retirement funds?
Based on your analysis, you expect Line Ltd. to pay dividends of $1, $2, and $3 over the next three years. At that time, you expect Line Ltd. and its dividend payment to grow at a constant rate of 7%...
Explain how a deviation from a cash-flow budget could lead to larger interest charges for a nonrevolving line of credit, even if the loan was originally designed at the beginning of the year to be...
In mid-December 2020, the S&P Global Rating took 236 rating actions in banking, 193 in the energy sector, and 60 for sovereign issuers. What did these actions entail?
1: Describe the net present value (npv) method for determining a capital budgeting project's desirability. What is the acceptance benchmark when using npv? Distinguished-level: identify the npv...
Suppose the government bond described in problem 1 above is held for five years and then the savings institution acquiring the bond decides to sell it at a price of $940. Can you figure out the...
Logan is conducting an economic evaluation under inflation using the then-current approach. If the inflation rate is $j$ and the real time value of money rate is $d$, which of the following is...
True or False: Inflation decreases the purchasing power of money.
What is a good working definition of inflation in 10 words or less?

Suppose for a one year project all outcome between a loss of 50 million and a gain

Question:

Expert Answer:

Value at Risk VaR measures the potential loss in value of a portfolio or investment over a specified ... View the full answer

Risk Management and Financial Institutions

Students also viewed these finance questions