A Stock Has a Price of $50 and Pays No

question 7

Multiple Choice

A stock has a price of $50 and pays no dividend.The historical standard deviation of the stock is 25% and the expected return on the stock is 12%.At the 95% confidence level,what is the Tail VaR over the next 6 months?

• A) $2.50
• B) $13.63
• C) $22.36
• D) $47.50

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Definitions:

Rational Ethics

A philosophical approach that uses reason and logical analysis to determine what actions are morally right or wrong.

Responsibility to Protect

A global political commitment endorsing states' obligations to protect populations from genocide, war crimes, ethnic cleansing, and crimes against humanity.

Genocide

The deliberate and systematic extermination of a national, racial, political, or cultural group.

War Crimes

Serious violations of the laws and customs of war, including atrocities committed against civilians or the mistreatment of prisoners of war.