$01$:$16$:$18$

Which of the followings best describes the difference between VaR's and Expected Shortfalls?

Multiple Choice

VaR is the minimum amount of loss at the cutoff level, e$.$g$.,5\%,$ whereas the expected shortfall is an average of all losses below the cutoff level.

The expected shortfall is the minimum amount of loss at the cutoff level, e$.$g$.,5\%,$ whereas the VaR is an average of all losses below the cutoff level.

VaR and the expected shortfall mean the same thing, i$.$e$.,$ the expected loss expected at the cutoff point or below.$$

VaR is the minimum amount of loss at the cutoff level, e$.$g$.,5\%,$ whereas the expected shortfall is the maximum expected loss below the cutoff level.