1. If you wished to calculate a stock's 5% daily VAR using historical data. If you had 2000 data points and you sorted the returns from the worst to best (meaning number 1 is the lowest return and number 2000 is the best). Which number return (1 through 2000), given how they are sorted, would represent the 5% daily VAR? (choose a number between 1 and 2000) Note: My answer is 769, however the correct answer is 100. Please explain?
1. If you wished to calculate a stock's 5% daily VAR using historical data. If you had 2000 data points and you sorted the returns from the worst to best (meaning number 1 is the lowest return and number 2000 is the best). Which number return (1 through 2000), given how they are sorted, would represent the 5% daily VAR? (choose a number between 1 and 2000) Note: My answer is 769, however the correct answer is 100. Please explain?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1. If you wished to calculate a stock's 5% daily VAR using historical data. If you had 2000 data points and you sorted the returns from the worst to best (meaning number 1 is the lowest return and number 2000 is the best). Which number return (1 through 2000), given how they are sorted, would represent the 5% daily VAR? (choose a number between 1 and 2000)
Note: My answer is 769, however the correct answer is 100. Please explain?
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