A one-year project has a 94 chance of leading to a gain of, Ask an Expert

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A one-year project has a 94% chance of leading to a gain of $1 million (or loss of -$1 million), a 2.5% chance of a loss of $6 million, and a 2.5% chance of a loss of $10 million, and a 1% chance of a loss of $20 million.

a. What is the VaR with a 95% confidence level?

b. What is the VaR with a 97.5% confidence level?

c. What is the VaR with a 99% confidence level?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91935720

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