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

---

Definitions:

Cartoon Character

A graphical representation, often in a stylized or exaggerative form, used primarily in animations and comic strips.

Cognitive Processes

Mental activities involved in the acquisition, processing, storage, and retrieval of information.

Self Concept

An individual's perception of themselves, encompassing beliefs, feelings, and thoughts about one's abilities and attributes.

Tension Reduction

A psychological process of relieving emotional or physical stress, often through various methods such as relaxation techniques, physical exercise, or therapeutic activities.