VAR quiz minimum, expected, next, currently

Carson

XYZ 95% surplus at risk calculated to be $500 million for an annual horizon. The expected return on XYZ asset base (currently at $2 billion) is 5%. The plan has a surplus of $100 million. Jon uses a 5% probability level to calculate the minimum amount by which the plan will be underfunded next year.

Using Jon's 5% probability level, the minimum amount by which TXYZ plan will be underfunded next year is closest to:

A) $5 million.

B) $25 million.

C) $300 million.