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Over the years, Jones Corporation's stockholders have provided $13,000,000 of capital, The firm has 1,500,000 shares...

Over the years, Jones Corporation's stockholders have provided $13,000,000 of capital, The firm has 1,500,000 shares of common stock outstanding, and the shares sell at a price of $21 per share. What isMeLaughlin's MVAR
$9,000,000
$13,000,000
$18,500,000
$10,400,000
$8,500,000

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Homework Answers

Answer #1

value at risk is a tool to measure the risk or potential loss incurred in invest ment or portfolio management.

simply it is difference between investment value and chance of lossing the investment.

therefore here the value of risk will be

investment value - amount recoverable value( number of shares outstanding * market value per share)

$13000000 - $21 * 1500000 = $18500000

so correct answer is $18500000.

all other options not meet the above formula condition hence they all are incorrect.

thank you....

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