Cerra Co. expects to receive 36 million euros tomorrow as a
result of selling goods to the Netherlands. Cerra estimates the
standard deviation of daily percentage changes of the euro to be
2.6 percent over the last 144 days. Assume that these percentage
changes are normally distributed. The expected percentage change of
the euro tomorrow is -0.45%. Use the value-at-risk (VAR) method
based on a 95% confidence level for the following question(s).
What is the maximum one-day loss in percentage?
(Keep your answer in 2 decimal points.)
Cerra Co. expects to receive 36 million euros tomorrow as a result of selling goods to the Netherlands. Cerra estimates
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