Consider the following hypothetical foreign exchange portfolio: What are the daily earnings at risk for the portfolio?
A) $200 / 0.45 = $444.44
B) $200 $\times$ 0.45 = $90.00
C) ($200 / 0.45) / 100 = $4.44
D) ($200 $\times$ 0.45) / 100 = $0.90

Question

Quizplus · Accepted Answer

The daily earnings at risk for the portfolio can be calculated by multiplying the portfolio value ($200) by the chosen confidence level (0.45). Therefore, the answer is $200 × 0.45 = $90.00. Choice B is the only one that provides this calculation.

Consider the Following Hypothetical Foreign Exchange Portfolio: What Are the Daily