A Portfolio Has a Current Value of $1000 $X$ Is Distributed Normally with Mean 100 and Standard Deviation 100

question 5

Multiple Choice

A portfolio has a current value of $1000.The annual profit $X$ is distributed normally with mean 100 and standard deviation 100.How much capital is adequate for the portfolio at a 95%-VaR?

• A) \(- 133\)
• B) \(- 65\)
• C) \(65\)
• D) \(133\)

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Definitions:

Variability

The extent to which data points in a statistical distribution or dataset differ from the average or mean value.

Median

The middle value in a sorted, ascending or descending, list of numbers.

Mean

The average value of a set of numbers, calculated by dividing the sum of all the values by the count of the values.

Observations

Records or measurements of variables or phenomena of interest, collected during an experiment or study.