An LTCM-style stress

A book has 8 positions, each with daily P&L standard deviation 0.5% of equity at unit scale. In normal times pairwise correlation is 0.05. The desk scales the book so that its 99% one-day normal VaR ($2.326\sigma$) is 2% of equity. (a) Find the scale factor. (b) If correlation rises to 0.7, what is the VaR at the same positions? (c) What scale would keep VaR at 2% under the stressed correlation, and what does that imply for expected return in normal times?