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

Recognize how to measure work performance and efficiency.

Understand the concept of the transformational chain in operations.

Learn the significance of certifications in achieving competitive advantage.

Realize the importance of value chain activities in an organization.

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Definitions:

Cognitive Development

The development of cognitive functions such as memory, solving problems, and making decisions, from childhood and teenage years into adult life.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Social Learning Theory

A theory that emphasizes the influence of other people. Even without reinforcement, people learn via role models. (Also called observational learning.)

Learning Theory

A conceptual framework describing how information is absorbed, processed, and retained during learning.