14 an Investor Has $2,000 Invested in Stock a and $5,000

question 2

Multiple Choice

14. An investor has $2,000 invested in stock A and $5,000 in stock B. The daily volatilities of A and B are 1.5% and 1% respectively and the coefficient of correlation is 0.8. What is the one day 99% VaR? (Note that N(-2.33) =0.01)

• A) $177
• B) $135
• C) $215
• D) $331

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Definitions:

Northern Europeans

Peoples originating from the northern part of Europe, often referred to in discussions about immigration, culture, and demographic changes.

Suburbs

Residential areas situated on the outskirts of cities and towns, typically characterized by lower population density than urban centers but more than rural areas.

Central Cities

The core urban area of a metropolitan region, often containing the major economic, political, and cultural institutions of that region.

Annexed Outlying Areas

Territories that have been formally incorporated into a country or state but lie outside its primary geographical boundaries.