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Explanation:
Q.2490 A pension fund has $100,000 in assets and $90,000 in liabilities. Assume that the expected return on the surplus is 5%, and the annual VaR of the surplus is 22% at the 99% confidence level. The initial surplus of the fund is equal to:
A
$10,000
B
$20,000
C
$5,000
D
$1,000
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