3. (10 points) A $1 million portfolio containing two stocks A and B. Both stocks have the same monthly expected return of 0.1 and monthly return variance of 0.04. The weight given to each stock is 50%, and the two stocks are perfectly correlated (i.e., their correlation coefficient is 1). Calculate the 5% and 1% analytical VaRs (both absolute and relative VaRs) of each stock and also of the whole portfolio. Assume that the monthly returns follow a normal distribution. 3. (10 points) A $1 million portfolio containing two stocks A and B. Both stocks have the same monthly expected return of 0.1 and monthly return variance of 0.04. The weight given to each stock is 50%, and the two stocks are perfectly correlated (i.e., their correlation coefficient is 1). Calculate the 5% and 1% analytical VaRs (both absolute and relative VaRs) of each stock and also of the whole portfolio. Assume that the monthly returns follow a normal distribution