The stock is trading at $110 with a daily return volatility of 2.07%.What is the approximation of

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

Question:

The stock is trading at $110 with a daily return volatility of 2.07%.What is the approximation of one day 95%.

VaR of this position for one share of stock?

Related Book For answer-question

Financial Institutions Management A Risk Management Approach

ISBN: 978-0071051590

8th edition

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

See More Books

Posted Date: Jun 20, 2023 03:42 AM

See More Questions

To insure a stock portfolio against price decreases, owners of stock portfolios should a on the stock index? A call option with a strike price of Rs55 can be bought for Rs4. What will be your net...
A stock is trading at $80 per share. The stock is expected to have a year-end dividend of $4 per share (D1 = $4), and it is expected to grow at some constant rate g throughout time. The stocks...
ZZZ stock is trading at $250 with an annual volatility of return 20%. The expected stock return is 12% and the annual risk-free rate of interest is 8%. The stock does not pay any dividends. (Note:...
There were no other non-current assets acquisitions or disposals. A dividend of 150m was paid on ordinary shares during the year. Required a) Prepare a cash flow statement for Blackheath plc for the...
Name and describe the six buyer-readiness stages. Discuss why it is important for a marketing communicator to know where the target audience stands and to what stage it needs to be moved.
Refer to the transactions for Castle Consulting Agency in Problem 3-11A. Required 1. Record each transaction directly in T accounts using the letters preceding the transactions to identify them in...
Redesign the fractionator of Example 6.8 using a random packing. The column is to be packed with 50-mm metal Pall rings. Determine the diameter of the tower, the height of packing in the stripping...
(EPS with Stock Dividend and Extraordinary Items) Agassi Corporation is preparing the comparative financial statements to be included in the annual report to stockholders. Agassi employs a fiscal...
Describe a specific scenario, situation, or application where using a foreign key would be necessary. 2) Explain your reasons, including the characteristics of the data, that necessitate the foreign...
In June 2017, BMW announced plans to spend $600 million to expand production at its South Carolina plant. The new investment would allow BMW to prepare for new X model SUVs. BMW apparently felt it...
Centralized versus Decentralized Database Management Systems"Please respond to the following: Compare and contrast benefits and challenges that exist between centralized database management systems...
Different drives offer varying efficiencies and cost points. The efficiency of a drive is a measure of how much of the input power is converted to output power. The cost of a drive includes the...
Market and Firm Outcomes in Monopoly Using a graph, determine market and firm short-run and long-run outcomes in monopoly. What quantity (Q) will the profit-maximizing monopolist below produce, what...
Both capital and natural resources can be used to produce other goods and services, but only capital: Responses has been produced. has been produced. includes labor. includes labor. grows naturally....
A significant drop in gasoline prices has encouraged more consumers to purchase cars. This has led to an increase in demand for car mechanics' services; however, here are not currently enough...
In 1930 the Australian Football League (AFL), at the time the Victorian Football League (VFL), implemented a price ceiling wage on all AFL players known as the Coulter Law. The ceiling was 3 pounds,...
10. Bill requires 600 grams of a salt for a certain reaction. He received 1.5 pounds of this salt. Is this enough to complete the reaction? (note: 1 pound = 454 grams (3 pts)
Flicker, Inc., a closely held corporation, acquired a passive activity this year. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were...
How does the price on a GNMA bond relate to the yield on a GNMA option from the perspective of the investor? What is the option-adjusted spread (OAS)?
State Bank has the following year-end balance sheet (in millions): The loans primarily are fixed-rate, medium-term loans, while the deposits are either short-term or variable-rate deposits. Rising...
What changes did the Federal Deposit Insurance Reform Act of 2005 make to the deposit insurance cap?
Write a program in $\mathrm{R}$ that generates $b$ samples of size $n$ from a specified distribution $F$. For each sample compute the statistic \(Z_{n}=n^{1 / 2}...
Write a program in $\mathrm{R}$ that generates $b$ samples of size $n$ from a $\mathbf{N}\left(\mathbf{0}, \boldsymbol{\Sigma}_{n}ight)$ distribution where...
Using a probability theory argument, show that the sum of all elements of any covariance matrix is non-negative.

The stock is trading at $110 with a daily return volatility of 2.07%.What is the approximation of

Question:

Expert Answer:

To calculate the Value at Risk VaR for one share of stock at a 95 confidence level we ca... View the full answer

Financial Institutions Management A Risk Management Approach

Students also viewed these finance questions