1. (Int Rate Risk Mgmt) State whether you agree or disagree with the following statement. Explain why. "Value at risk (VaR) is a technique that determines the maximum possible loss to the value of a security or an institution under the worst possible circumstances".

2. The Nymex stock has a beta of 1.50, the expected free cash flow per share for the coming year, FCFE1, of $4.45 and growth rate, g, of 4%. The risk-free rate of return is 5% and the required rate of return on the market is 11%. What should be the share price of Nymex? (Do not round intermediate calculations. Round your answer to 2 decimal places.)