8) (10 points] There are three trading desks at a small firm and the Managing Director of each desk has computed the 5% Expected Shortfall (ES) for their own desk. These three 5% ES values are computed to be $0.7 million, $1.4 million and $0.6 million respectively. An analyst is interested in computing the firm wide risk via a 5% ES. He he has learned that ES is a coherent risk measure and so reports the sum of the three values, i.e. $2.7 million as the firm wide 5% ES. In a few sentences (absolutely no need to write a whole page), critique this approach. 8) (10 points] There are three trading desks at a small firm and the Managing Director of each desk has computed the 5% Expected Shortfall (ES) for their own desk. These three 5% ES values are computed to be $0.7 million, $1.4 million and $0.6 million respectively. An analyst is interested in computing the firm wide risk via a 5% ES. He he has learned that ES is a coherent risk measure and so reports the sum of the three values, i.e. $2.7 million as the firm wide 5% ES. In a few sentences (absolutely no need to write a whole page), critique this approach