# [Solved] Suppose that the standard deviation of daily returns for a stock in the past quarter is 1.6 percent, and that

Suppose that the standard deviation of daily returns for a stock in the past quarter is 1.6 percent, and that the expected daily return of the stock is 0.01 percent. Using a 98 percent confidence interval, if the daily returns are normally distributed, the lower boundary is approximately 2.326 standard deviations away from the expected outcome. Using the value-at-risk method, the maximum percentage one-day loss based on a 98 percent confidence level is: -4.009 percent -3.712 percent -3.564 percent -3.304 percent Suppose an investor has \$14 million invested in that stock. The maximum one-day loss is estimated to be: -\$441,728 -\$478,106 -\$519,680 -\$576,845 Grade It Now Save

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