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?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 1P

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