medium · Quantitative Finance

An analyst is estimating the 99% one-day Value at Risk (VaR) for a $20 million portfolio with a daily expected return of 0.05% and a daily volatility of 1.4%.

Assuming normal returns, what is the VaR in dollars?

  1. $460,600
  2. $736,400
  3. $641,280
  4. $560,000

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