Calculate the value of N for which Value at Risk is twice as much as the DEAR.
To calculate the value of N for which the Value at Risk (VaR) is twice as much as the Difference between Expected and Actual Returns (DEAR), we need some additional information. Specifically, we need the values of VaR and DEAR.
Once you have the values of VaR and DEAR, follow these steps to find N:
1. Subtract the DEAR from the VaR to find the difference between them. Let's call this difference "diff".
diff = VaR - DEAR
2. Multiply the DEAR by 2 to determine the target value for VaR.
target_vaR = 2 * DEAR
3. Divide the target value of VaR by the difference between VaR and DEAR (diff) to get the value of N.
N = target_vaR / diff
By following these steps, you should be able to calculate the value of N for which VaR is twice as much as DEAR.