Which of the Following Is Approximately the Value at Risk

question 6

Multiple Choice

Which of the following is approximately the Value at Risk at 5 percent of a portfolio of $10 million of asset A,whose expected return is 15 percent and volatility is 35 percent,and $15 million of asset B,whose expected return is 21 percent and volatility is 30 percent,where the correlation between the two assets is 0.2.

• A)$5.6 million
• B)$10 million
• C)$15 million
• D)$1.25 million
• E)none of the above

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Definitions:

Impose Will

The act of enforcing one's own desires or decisions upon another individual or group, often without their consent.

Power

The ability or capacity to act or do something effectively, often implying control over resources, influence over others, or strength.

Food Foragers

People or groups who subsist by hunting, fishing, and gathering wild plants and fungi, rather than cultivating crops or domesticating animals.

Incidences of Warfare

Occurrences or instances of armed conflict between groups, emphasizing the frequency and distribution of such events over time or space.