The correct answer is B: CAD 1.444 million.

The component Value at Risk (VaR) for stock T (CVaRt) is calculated using the formula: $CVaRT = VaRT \times \rho_{T,P}$ where:

• $VaRT$ is the VaR of stock T.
• $\rho_{T,P}$ is the correlation coefficient between stock T and the portfolio.

Given:

• The value of stock T ($W_t$) is CAD 15 million.
• The standard deviation of stock T returns ($\sigma_t$) is 13% or 0.13.
• The 95% confidence factor for the VaR estimate ($\alpha(95\%)$) is 1.645.

The VaR of stock T ($VaRT$) is calculated as: $VaRT = W_t \times \sigma_t \times \alpha(95\%) = 15 \times 0.13 \times 1.645 = 3.208 \text{ million}$

Now, using the correlation coefficient ($\rho_{T,P} = 0.45$) between stock T and the portfolio, the component VaR for stock T is: $CVaRT = 0.45 \times 3.208 = 1.444 \text{ million}$

This calculation shows that the component VaR of stock T is CAD 1.444 million, which corresponds to option B.