Your $2 Million Portfolio Consists of 25% Evans Stock with

question 18

Multiple Choice

Your $2 million portfolio consists of 25% Evans stock with = 0.16,σ = 0.22 and 75% Indy stock with = 0.09,σ = 0.12.The correlation coefficient is 0.13.What is the value at risk over 1 day at a 99% confidence level? Assume 252 days per year.

• A) $21,792
• B) $31,792
• C) $41,792
• D) $51,792

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Definitions:

Customer Order Cycle

The complete sequence of events from the time a customer places an order until the product is delivered and payment is received.

Customer/Retailer Interface

The point of contact and interaction between a customer and a retailer, where services and information are exchanged.

Replenishment Cycle

The repeat process of ordering and stocking new inventory to replace what has been sold or used, ensuring a sufficient level of stock is maintained.

Retailer and Distributor

Involved in the distribution process, with retailers selling goods directly to consumers and distributors serving as intermediaries who move products from manufacturers to retailers or other businesses.