Determine the maximum percentage loss of brazilian real


Applying the Value-at-Risk Method

Solve the following problem:

You use today's spot rate of the Brazilian real to forecast the spot rate of the real for 1 month ahead. Today's spot rate is $.4558. Use the value-at-risk method to determine the maximum percentage loss of the Brazilian real over the next month based on a 95 percent confidence level. Use the spot exchange rates at the end of each of the last 6 months to conduct your analysis. Forecast the exchange rate that would exist under these conditions.

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Accounting Standards: Determine the maximum percentage loss of brazilian real
Reference No:- TGS02066600

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