Find the three day value at risk for the portfolio

Assignment Help Finance Basics

Reference no: EM132067187

Question 1: A portfolio consists of $450,000 in Google stock and $600,000 in Disney stock. Volatility on a daily basis are 2.2 % and 1.4% respectively with a correlation coefficient of .35 between the two stocks. What is the three day 99% value at risk for the portfolio? Explain what the number means.

Reference no: EM132067187

Questions Cloud

What is the division residual income : Ocean Division currently earns $780,000 and has divisional assets of $3.9 million. What is the division's residual income if the asset is leased

How would your answer change if the option were european : Recalculate the value of the Buffelhead call option, assuming that the option is American and that at the end of the first six months the company pays.

Which investment offers you the highest ear : Beginning this year, Mary is planning to save $800.00 each year for the next six years to take a vacation to commemorate the seventh year of her career.

Compute the equity in earnings of gargiulo reported : ACC 230: ADVANCED ACCOUNTING QUESTION - Compute the equity in earnings of Gargiulo reported on Posito's books for 2012

Find the three day value at risk for the portfolio : A portfolio consists of $450,000 in Google stock and $600,000 in Disney stock. Volatility on a daily basis are 2.2 % and 1.4% respectively with a correlation.

Estimate the current cost of equity by taking average : Calculate the two costs of debt. Estimate the current cost of equity by taking an average of the three different methods of estimation?

Why sue is resident or not based on definition of resident : Sue was born in Australia and remained in Australia until completing her tertiary studies. Sue then decided to leave Australia for an unspecified period of time

Derive a switch implementation for a boost converter : Derive a switch implementation for a boost converter so that the input and output circuits share a common positive terminal.

What is total value of ending cash flow in year three : What are the operating cash flows each year? What is the total value of ending (non operating) cash flow in year 3?

User Account

All Pages