g Let R denote the simple monthly return on Microsoft stock and let W0 denote initial wealth to be invested over the month. Assume that R ? N(0:05;(0:12)2 ) and that W0 = $100,000. ? Determine the 1% and 5% value-at-risk (VaR) over the month on the investment. That is, determine the loss in investment value that may occur over the next month with 1% probability and with 5% probability. ? Determine the 1% and 5% expected shortfall (ES) over the month on the investment.

Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. ( t or f)

Differentiate between the trait, behavioral, and results-based performance appraisal systems, providing an example where each would be most applicable.