1. The average historical annual return on a stock is 7.16%, with a standard deviation of 44.35%. What is the 97.5% annual value-at-risk (VaR) on a $1 million investment in this stock?
a. -$371,900
b. -$443,000
c. -$815,400
d. -$975,000
e. -$1,000,000
2. What are some of the ways a firm can try to increase the overall value of its technology and its likelihood of becoming the dominant design?
Are dominant designs good for consumers? Competitors? Complement tors? Suppliers?