The computation follows: $ \text{VaR}^2_{\text{(portfolio)}} = \text{VaR}^2_{\text{(stocks)}} + \text{VaR}^2_{\text{(fixed income)}} $ Assuming the correlation is $ 1,367,000^2 = 1,153,000^2 + \text{VaR}^2_{\text{(fixed income)}} $ $ \text{VaR}_{\text{(fixed income)}} = 734,357 $ Next convert the annual VaR to daily VaR: $ 734,357 / \sqrt{250} = 46,445 $ | Financial Risk Manager Part 1 Quiz - LeetQuiz