User Account

All Pages

Calculate the var

Assignment Help Accounting Basics
Reference no: EM131015414

A portfolio consists of 100 shares of stock X and 100 shares of stock Y. The current price of X is $60 and the current price of Y $40. Annualized volatilities are 40% for X and 20% for Y. The correlation between the two stocks is .5. Assume the daily expected return on both stocks is equal to 0.

  • Calculate the VaR for 7 days at the 95% confidence level
  • Calculate the VaR for 28 days at the 95% confidence level

Reference no: EM131015414

Questions Cloud

Smallest expected loss for portfolio in coming month : The return correlation between DW Co. and Woodpecker, Inc., is zero. What is the smallest expected loss for your portfolio in the coming month with a probability of 2.5 percent?
Risk level equivalent to that of overall market : Your portfolio has a beta of 1.54. The portfolio consists of 16 percent U.S. Treasury bills, 34 percent stock A, and 50 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?
What is the beta of stock b : Your portfolio has a beta of 1.57. The portfolio consists of 16 percent U.S. Treasury bills, 35 percent stock A, and 49 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?
What other types of organizations might respond : What role do you think state and federal agencies should have during the response phase of crisis and emergency management? Explain.
Calculate the var : Calculate the VaR for 7 days at the 95% confidence level. Calculate the VaR for 28 days at the 95% confidence level
Expected return on portfolio : A portfolio is entirely invested into BB Equity, which is expected to return 6%, and Z Bond's, which are expected to return 8%. 60% of the funds are invested into BB's and the rest in Z's. What is the expected return on this portfolio?
During which phases does the organization operate : What are the roles of this organization, and what is its connection to the National Response Framework? Explain.
What is the expected return of the portfolio : You have a portfolio equally invested in Butterfly Hubcaps, Addi Corp and BrianAc€?cs Auto. The expected returns are 5%, 12%, and 17.5%. What is the expected return of the portfolio?
Describe the major categories of tests : Define the term test. Describe the major categories of tests and identify the major uses and users of these tests

Reviews

Write a Review

Accounting Basics Questions & Answers

  Management incentives to choose fifo

How are accounting numbers used to monitor this agency contract between owners and managers? Evaluate management's incentives to choose FIFO. Evaluate management's incentives to choose LIFO.

  The payroll department of dumont has a policy

The Payroll Department of DuMont has a policy

  Record the purchase of fire insurance policy

a) Record the purchase of fire insurance policy on April 1, 20x2

  Book value per share shown below is information relating to

book value per share shown below is information relating to the stockholders equity section of earthling inc. 6

  What are your thoughts on making adjusting journal entries

what are the four different adjusting journal entries? what accounting assumptions necessitate the use of adjusting

  Evaluate angela peters attorneys first month of operations

angela peters practiced law with a partnership for 10 years. recently she opened her own law office which she operates

  The adjusting entry for accrued fees

The adjusting entry for accrued fees was omitted at October 31, the end of the current year.

  Journalize the entries to record the forgoing transactions

journalize the entries to record the forgoing transactions. 1. indicate the amount of the interest expense in a 2014

  Financial reporting and tax purposes

Maine Company reported a pretax operating loss of $150,000 for financial reporting and tax purposes in 2012. The enacted tax rate is 40% for 2012 and subsequent years.

  For each item following determine the differential amount

maria turner has just graduated from college with a degree in accounting. she had planned to enroll immediately in the

  Murphy company plans to produce 50000 units in march and

murphy company plans to produce 50000 units in march and 60000 units in april. each unit requires 6 pounds of direct

  The bruin corporation a c corporation is owned 100by john

the bruin corporation a c corporation is owned 100by john bean and had taxable income in 2013 of 500000. john is also

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd