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

question 11

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 0.65.What is the value at risk over 1 day at a 99% confidence level? Assume 252 days per year.

• A) $27,976
• B) $37,976
• C) $47,976
• D) $57,976

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Definitions:

Organic Solidarity

A form of social cohesion that arises when people in a society are interdependent, but hold varying roles and responsibilities.

Organic Solidarity

A term referring to social cohesion based upon the dependence individuals have on each other in more advanced societies.

Repressive Law

A concept in sociology referring to laws and legal mechanisms that maintain social order and control through the suppression of undesirable behaviors.

Profane

Something that is not sacred or biblical; relating to the secular, mundane aspects of life as opposed to the spiritual or religious.