1. Suppose you've estimated that the fifth-percentile value at risk of a portfolio is 30%. Now you wish to estimate the portfolio's first-percentile VaR (the value below which lie 1% of the returns). Will the 1% VaR be greater or less thar -30\%? () 5-2) 2. The real interest rate approximately equals the nominal rate minus the inflation rate. Suppose the inflation rate increases from 3\% to 5\%. Does the Fisher equation imply that this increase will result in a fall in the real rate of interest? Explain. () 5-4)