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9. Your portfolio of stocks is worth $250,000. The returns on the portfolio are normally...

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Accounting

9. Your portfolio of stocks is worth $250,000. The returns on the portfolio are normally distributed with a standard deviation of 13%. Calculate the VaR of my portfolio with 99% confidence.

A. $17,960

B. $27,960

C. $210,023

D. $75,725

E. None of the above

10. What is the difference between parametric and nonparametric methods for estimating VaR?

A. Parametric methods do not make assumptions concerning the distribution of returns

B. Nonparametric methods assume returns are normally distributed

C. Nonparametric methods use historical data

D. Parametric methods use future data

E. None of the above

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