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NEW QUESTION: 1
A risk analyst analyzing the positions for a proprietary trading desk determines that the combined annual variance of the desk's positions is 0.16. The value of the portfolio is $240m. What is the 10-day stand alone VaR in dollars for the desk at a confidence level of 95%? Assume 250 trading days in a year.
A. 0
B. 1
C. 2
D. 3
Answer: D
Explanation:
Explanation
The z value at the 95% confidence level is 1.64. Since the variance is 0.16, the annual volatility is 40%.
Therefore the daily volatility is 40% x 10/250 = 8%. The VaR therefore is 8% x 1.64 x $240m = $31,488,000

NEW QUESTION: 2

A. Option C
B. Option A
C. Option D
D. Option B
E. Option E
Answer: D

NEW QUESTION: 3

A. Allocate Space
B. Browse Datastore
C. Low Level File Operations
D. Remove File
E. Update Virtual Machine Files
Answer: A,B,C