The DEAR of a Bank's Trading Portfolio Has Been Estimated

question 7

Multiple Choice

The DEAR of a bank's trading portfolio has been estimated at $5,000. It is assumed that the daily earnings are independently and normally distributed.
-What is the 20-day VAR?

• A)$5,000.
• B)$10,000.
• C)$15,811.
• D)$22,361.
• E)$50,000.

Develop the ability to write simple Java programs that utilize input and output operations.

Acquire knowledge on the standard Java code libraries and their organization into packages, classes, and methods.

Enhance problem-solving skills by writing code snippets and larger programs for specific tasks.

Understand the basic principles and usages of applets in Java.

---

Definitions:

Price Index

A statistical measure that examines the weighted average of prices of a basket of consumer goods and services, showing trends over time.

Base Year

A specific year against which economic, financial, or statistical data is standardized or indexed, allowing for comparison over time.

Consumer Price Index

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.

Inflation Rate

The pace at which the overall price level for goods and services increases, diminishing the buying power.