3. Consider $10m invested in a stock. The annual volatility of the rate of return is 25%. Assuming that the return is IID and normally distributed with =0. a. What is the 99% 1-day VaR? b. What is the 95% 1-day VaR? c. What is the 95% one-week VaR? d. What is the 95% 1-day ES? e. What is the 99% 10-day ES? 4. A portfolio consists of $3m each in three stocks (stock A, B and C). Their expected returns and return covariance over the next 3 months are estimated at: 8% 0.16 0 0.08 6% 0 0.09 0 4% 0.08 0 0.04 Note: the numbers are in annualized terms. Assume MVN distribution. a. Find the 1-week 99% VaR for this portfolio. b. Find the 2-weeks 95% VaR for this portfolio. c. What are the 1-week marginal VaR of stock A, B, and C at 95% confidence? d. Considering increasing the stock A by $50000, what is the 1- week incremental VaR of stock A? e. What are the 1-week component VaR of stock A, B, and C? 5. Given the following 100 ordered simulated percentage returns of an asset, -30, -20, -16, -14, -10, -7.5, -7, -6, -5, -4.3, -4, -4, -4, -3, ...3.5, 4, 6, 6, 8, 8.8, 9,11, 12, 12, 12.8,14, 18, 19, 19.7, 21, 22, 25. a. Estimate both the VaR and expected shortfall (both expressed in terms of returns) at a 90% confidence level (including the 90th percentile). b. Estimate both the VaR and expected shortfall (both expressed in terms of returns) at a 95% confidence level (including the 95th percentile)