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A large bank currently has a security po...

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题目

A large bank currently has a security portfolio with a market value of $145 million. The daily returns on the bank's portfolio are normally distributed with 80% of the distribution lying within 1.28 standard deviations above and below the mean and 90% of the distribution lying within 1.65 standard deviations above and below the mean. Assuming the standard deviation of the bank's portfolio returns is 1.2%, calculate the VaR(5%) on a one-day basis.

选项

A.$2.87 million

B.$2.23 million

C.$2.04 million

D.Cannot be determined from information given

答案

A

解析

VaR(5%)=1.65×1.2%×145,000,000=2,871,000VaR(5%)=1.65×1.2%×145,000,000=2,871,000