4) [5 points] A hedge fund invests in a financial product and wants to compute a 1% monthly VaR for its returns. The product has not been in existence for long and the fund has data only on 120 monthly returns. An analyst at the firm has recently taken a course on Risk Management, where she has heard about the semi-parametric method of Extreme Value Theory (EVT) used in computing VaR and that it does not make very strong assumptions in modelling. In the context of her situation, would you recommend that she use EVT? a) Yes b) No Please provide a BRIEF (one or two sentences will suffice) justification of your choice. You will not get ANY credit if you fail to provide an explanation in words 4) [5 points] A hedge fund invests in a financial product and wants to compute a 1% monthly VaR for its returns. The product has not been in existence for long and the fund has data only on 120 monthly returns. An analyst at the firm has recently taken a course on Risk Management, where she has heard about the semi-parametric method of Extreme Value Theory (EVT) used in computing VaR and that it does not make very strong assumptions in modelling. In the context of her situation, would you recommend that she use EVT? a) Yes b) No Please provide a BRIEF (one or two sentences will suffice) justification of your choice. You will not get ANY credit if you fail to provide an explanation in words