Consider a $900 Portfolio with Three Assets,each Held in Equal

question 25

Multiple Choice

Consider a $900 portfolio with three assets,each held in equal value.The VaR of the portfolio is such that an increase in $1 of any of the asset holdings results in a $0.05 increase in VaR.The VaR of this portfolio is approximately equal to:

• A)$5
• B)$15
• C)$45
• D)$135

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Definitions:

Dark Adaptation

The process by which the eyes increase their sensitivity to low levels of light, allowing for better vision in dark conditions.

Retinaldehydes

A form of vitamin A that serves as a precursor to retinoic acid, used in skincare for its anti-aging properties.

Trichromatic Theory

A theory in color vision proposing that the human eye has three types of receptors with differing sensitivities to different light wavelengths, corresponding to red, green, and blue.

Color Vision

The capacity of the visual system to identify objects by the wavelengths of light they reflect, emit, or transmit.