Calculation: Annual VaR = Daily VaR × √(number of trading days) × √(variance scaling factor) × confidence multiplier

Given:

• Daily VaR = 6,247,000
• Number of trading days = 250
• Variance scaling factor = 0.0002
• Confidence multiplier = 1.645

Annual VaR = 6,247,000 × √250 × √0.0002 × 1.645 = 6,247,000 × 15.8114 × 0.01414 × 1.645 = 2,297,854

The solution confirms: "Annual VaR = 6,247,000 × (250^0.5) × (0.0002^0.5) × 1.645 = 2,297,854"