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

question 28

Multiple Choice

A portfolio has a current value of $1000. The annual profit $X$ is distributed normally with mean 100 and standard deviation 100. What is the 99%-VaR?

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

---

Definitions:

Amines

Organic compounds and functional groups that contain a basic nitrogen atom with a lone pair, typically derived from ammonia by replacing one or more hydrogen atoms with hydrocarbon groups.

Aniline

An aromatic amine with the formula C6H5NH2, used as a precursor in the synthesis of dyes, drugs, and plastics.

Acid Catalysis

The acceleration of a chemical reaction by an acid, which functions by donating protons (H+ ions) to transitional states or reactant molecules.

Organic Product

A compound derived from living organisms or synthetic processes designed to mimic naturally occurring compounds, often involved in various chemical reactions.