A portfolio manager has positions that include a 100,000 investment in A Corp and a 75,000 investment is B Corp. The position in A Corp has standard deviation of gains and losses of 35% per annum whilst the position in B Corp has standard deviation of gains and losses of 22% per annum. Gains and losses for both A Corp and B Corp are normally distributed while the returns A Corp and B Corp have correlation -0.6 (minus 0.6). When necessary, assume 252 trading days in the calendar year. Based on the above and the table in the Appendix:

1. Calculate the 1-month 99% VaR and ES of the portfolio

2. Calculate the 1-month 99% marginal VaR of each position. Interpret your answer

3. Can the portfolio manager increase the position of A Corp to reduce their market risk exposure? Justify your answer