Your $1 Million Portfolio Consists of 50% of Jacko with

question 20

Multiple Choice

Your $1 million portfolio consists of 50% of Jacko with = 0.14,σ = 0.20 and 50% of Macko with = 0.10,σ = 0.15.The correlation coefficient is 0.25.What is the value at risk over 1 week at a 95% confidence level?

• A) $23,447
• B) $26,447
• C) $29,447
• D) $32,447

---

Definitions:

Payment Interval

The scheduled period between payments made by a borrower or payer to a lender or payee.

Compounded Quarterly

A financial calculation where interest is added to the principal four times a year, resulting in an increased amount on which subsequent interest calculations are based.

Lump Sum

A one-time transaction made at a specific moment, rather than several payments spread across a period.

Withdraw

To remove funds from a bank account or investment.