If Asset 1 is dropped from the portfolio, what will be the reduction in portfolio VaR?
A. USD 26.84
B. USD 41.94
C. USD 46.94
D. USD 83.88
Answer:A
If Asset 1 is dropped from the portfolio, what will be the reduction in portfolio VaR?
A. USD 26.84 B. USD 41.94 C. USD 46.94 D. USD 83.88
Explanation: If Asset 1 is dropped, the portfolio will contain only Asset 2. Then the new portfolio VaR is that