22) Consider a position of 2,000,000 investment in asset X and 3,000,000 in Investment Y. Daily volatilities for both assets is 0.1% and the correlation coefficient is.30 What is the 10 day 99% VAR? (Closest to! i.e. approximately) A) $59,300 B) $5,931 C) $33,400 D) $30,200

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A: Hi, since you have posted a question with multiple questions, we will answer the first one only, as…

Q: 2. An investment of P3,000,000.00 earns interest of 9% compounded continuously. What is the…

A: Solution:- Effective rate of interest means the net annual interest rate after effect of all the…

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A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or…

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A: The internally generate funds can be calculated as per AFN equation

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Q: The expected average rate of return for a proposed investment of $639,000 in a fixed asset, with a…

A: b. 52.43%

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A: We will have to find the incremental cash flows and then determine the present value of these.…

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A: Expected return on the investment = (Poor condition return x Probability) + (Normal condition return…

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Q: Assuming a positive Net present value of P10, 000, a. Determine the amount of the original…

A: Original investment means the amount which an investor invests in an investment or a project. This…

Q: А C Capital investment $ 2,000 7,000 4,200 Annual revenues 3,200 8,000 6,000 Annual costs 2,100…

A: Incremental analysis determine the true cost differences between the two alternatives.

Q: Given the following cash flow for a certain investment and a MARR of 12% per year: 0 1 2 3 4 5 6…

A: Here, Cash Flow in Year 0 is -P30,000 Cash Flow in Year 1 is -P 19,000 Cash Flow in Year 2, 3 and 4…

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A: Capital budgeting is the process of decision making used to evaluate the profitability of the…

Q: Cardinal Company is considering a five-year project that would require a $2,765,000 investment in…

A: Solution: Payback period = Initial investment / Annual cash inflows Simple rate of return = Net…

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Q: This project (based upon the most likely estimates) is profitable. (a) True (b) False.

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A: Er=p1 x r1+(p2 x r2)+(p3 x r3)+(p4 x r4)E(r)J=0.3 x 5%+0.4 x 5%+0.2 x 5%+0.1×5%=5%E(r)k=0.3 x…

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A: Following are the information given: Return on Asset J           Return on Asset K 5%…

Q: Question: of A proposed new investment has projected sales $842,000. Variable costs are 57 percent…

A: Sales    842,000.00 Variable costs  (479,940.00)Contribution margin   362,060.00 Fixed costs…

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Q: Calculate the following values ​​according to the table given: net cash flow, interest 18%…

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Q: Assume you are considering a USD 100,000 investment for which the future cash flows depend on the…

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Q: Using a MARR of 15%, the preferred Alternative is: TABLE P6-82 Data for Problems 6-82 through 6-85…

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Q: er question B.

A: The given problem can be computed using VAR and STDEV formula in excel.

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Risk Analysis

Risk management is the entire walkthrough process of helping the organization manage risks or avoid them altogether. It is an in-depth study to determine the risks and uncertainties faced by the business and how these impact the objectives and outcomes of the business. Risk analysis is a procedure of risk assessment followed by the management of an organization to avoid risks that may harm the functioning and efficiency of the company.