Your Beloved Machines Inc.'s stock has a weekly expected return of 0.0025 and weekly volatility of the returns of 0.03.Then the weekly 95 percent and 99 percent confidence levels (value-at-risk at the 5 and 1 percent levels) for YBM are (where 5 percent left tail is 1.65 standard deviations and 1 percent tail is 2.33 standard deviations away from the mean) :
A) 4.70 percent and 6.74 percent
B) 5.23 percent and 3.75 percent
C) 4.70 percent and 3.75 percent
D) 2.50 percent and 3.00 percent
E) None of these answers are correct.
Correct Answer:
Verified
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