An investor owns 12,000 shares of a particular stock

Finance Oct 24, 2020

An investor owns 12,000 shares of a particular stock. The current market price is R100. What is the "worst case" value of the portfolio in six months? For the purposes of this question, define the worst case value of the portfolio as the value which is such that there is only a 1% chance of the actual value being lower. Assume that the expected return and volatility of the stock price are 8.5% and 23%, respectively.