(Answered) Let us consider a 5 million position in silver in addition

Finance

Let us consider a $5 million position in silver. In addition, let us consider that the returns of gold are normally distributed (Gaussian) . The standard deviation of silver returns on a daily basis is 0.45%.

How much can this position potentially lose in one day with 99 percent confidence interval?
How much this position could lose in one month with 99 percent confidence interval if one holds this position. (There are 20 trading days in a month)

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M93132012
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

The required rate of return on a certain bond changes from

The required rate of return on a certain bond changes from 12 percent to 8 percent, causing the price of the bond to change from $900 to $1,100. Determine the bond's price elasticity.

You purchases a house for 18133300 you made a down payment

You purchases a house for $181,333.00 . You made a down payment of 20,000 and the remainder of the purchase price was financed with a mortgage loan. The mortgage loan is a 30 year mortgage with an annual interest rate of ...

Evaluate the following fund using single-index modelfund

Evaluate the following fund using single-index model: Fund 1: Alpha (a): 1.1 Beta (B): 1.9 Variance (e): 100 Market risk expected return is 8%, and an expected standard deviation =12.25% or market variance 150. Using the ...

What is venture capital and what types of firms receive

What is venture capital, and what types of firms receive it? What are some of the important services provided by underwriters? What type of underwriting is the most common in the United States, and how does it work? What ...

Assignment - examining a companys working capital

Assignment - Examining a company's working capital needs Select a company that has inventory, accounts receivable and accounts payable on its balance sheet. Using the most recent annual financial statement for a company, ...

The inside door has total debt of 76662 total equity of

The Inside Door has total debt of $76662, total equity of $224477, and a return on equity of 12.7 percent. What is the return on assets? Input your answer as a decimal rounded to 4 places (i.e., 1% = 0.0100).

Youre prepared to make monthly payments of 210 beginning at

You're prepared to make monthly payments of $210, beginning at the end of this month, into an account that pays 6.2 percent interest compounded monthly. How many payments will you have made when your account balance reac ...

What are some methods a company use to ensure the entire

What are some methods a company use to ensure the entire organization understands and is involved with promotions that include their brand image? Can you share examples?

Some managers focus on the bottom line which is the net

Some managers focus on the bottom line, which is the net income. What are some potential problems associated with such a view. Please help me by providing an historical example of a business or manager that suffered from ...

If someone owns a hair salon what type if any life

If someone owns a hair salon what type if any life insurance should they have if their spouse works at a nuclear plant? How much coverage should the owner have?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert