As part of your analysis (of RTI), you calculated 120 annualized monthly returns for RTI over the last 10 years. The table below ranks all 120 returns from the highest (139.273%) to the lowest (-32.67%).

a. Calculate the 4% VaR. (5 points)

b. Calculate the expected shortfall (ES) at the 4% level. (5 points)

c. Which of these measures is the most pessimistic estimate of the riskiness of RTI? Explain your rationale. (4 points)

\begin{tabular}{|r|r|r|r|r|r|} \hline 139.273 & 70.76973 & 33.44157 & 17.00694 & 1.550874 & 15.8386 \\ \hline 121.7082 & 70.5349 & 33.18402 & 16.97665 & 0.15624 & 16.9035 \\ \hline 113.9808 & 66.92517 & 32.3891 & 16.28518 & 0.1896 & 17.8971 \\ \hline 100.2383 & 64.0577 & 31.94998 & 16.2251 & 1.37588 & 19.4071 \\ \hline 92.42082 & 60.96641 & 30.31605 & 14.47807 & 1.52071 & 20.0354 \\ \hline 91.93812 & 60.67967 & 30.19054 & 14.18202 & 2.03423 & 20.5656 \\ \hline 89.99992 & 60.17686 & 29.86178 & 13.94073 & 2.29625 & 20.6563 \\ \hline 89.86038 & 53.92727 & 29.59561 & 13.86196 & 3.15612 & 21.8039 \\ \hline 87.90029 & 51.56665 & 28.28468 & 13.7793 & 3.23564 & 22.3595 \\ \hline 87.18278 & 49.2718 & 27.74365 & 11.95869 & 3.53277 & 24.1948 \\ \hline 86.08503 & 45.21356 & 26.95561 & 11.79736 & 6.23721 & 25.4556 \\ \hline 85.51272 & 43.4514 & 25.71885 & 10.87671 & 7.27602 & 25.528 \\ \hline 84.4945 & 42.73858 & 25.29337 & 10.82257 & 8.0988 & 25.5845 \\ \hline 81.81487 & 39.77079 & 23.84009 & 10.22539 & 9.40545 & 26.2212 \\ \hline 78.6193 & 38.85159 & 23.02676 & 9.096353 & 9.42206 & 26.9046 \\ \hline 77.33038 & 38.82887 & 22.16073 & 8.758075 & 9.96044 & 27.5972 \\ \hline 75.42571 & 38.75575 & 21.56512 & 7.760949 & 11.3582 & 29.2348 \\ \hline 74.77076 & 35.90144 & 19.95164 & 6.033329 & 11.9791 & 29.7546 \\ \hline 73.2764 & 33.87951 & 19.72466 & 4.267272 & 13.6546 & 30.2648 \\ \hline 72.00631 & 33.72873 & 18.80475 & 3.595479 & 13.9868 & 32.6774 \\ \hline \end{tabular} \begin{tabular}{|r|r|r|r|r|r|} \hline 139.273 & 70.76973 & 33.44157 & 17.00694 & 1.550874 & 15.8386 \\ \hline 121.7082 & 70.5349 & 33.18402 & 16.97665 & 0.15624 & 16.9035 \\ \hline 113.9808 & 66.92517 & 32.3891 & 16.28518 & 0.1896 & 17.8971 \\ \hline 100.2383 & 64.0577 & 31.94998 & 16.2251 & 1.37588 & 19.4071 \\ \hline 92.42082 & 60.96641 & 30.31605 & 14.47807 & 1.52071 & 20.0354 \\ \hline 91.93812 & 60.67967 & 30.19054 & 14.18202 & 2.03423 & 20.5656 \\ \hline 89.99992 & 60.17686 & 29.86178 & 13.94073 & 2.29625 & 20.6563 \\ \hline 89.86038 & 53.92727 & 29.59561 & 13.86196 & 3.15612 & 21.8039 \\ \hline 87.90029 & 51.56665 & 28.28468 & 13.7793 & 3.23564 & 22.3595 \\ \hline 87.18278 & 49.2718 & 27.74365 & 11.95869 & 3.53277 & 24.1948 \\ \hline 86.08503 & 45.21356 & 26.95561 & 11.79736 & 6.23721 & 25.4556 \\ \hline 85.51272 & 43.4514 & 25.71885 & 10.87671 & 7.27602 & 25.528 \\ \hline 84.4945 & 42.73858 & 25.29337 & 10.82257 & 8.0988 & 25.5845 \\ \hline 81.81487 & 39.77079 & 23.84009 & 10.22539 & 9.40545 & 26.2212 \\ \hline 78.6193 & 38.85159 & 23.02676 & 9.096353 & 9.42206 & 26.9046 \\ \hline 77.33038 & 38.82887 & 22.16073 & 8.758075 & 9.96044 & 27.5972 \\ \hline 75.42571 & 38.75575 & 21.56512 & 7.760949 & 11.3582 & 29.2348 \\ \hline 74.77076 & 35.90144 & 19.95164 & 6.033329 & 11.9791 & 29.7546 \\ \hline 73.2764 & 33.87951 & 19.72466 & 4.267272 & 13.6546 & 30.2648 \\ \hline 72.00631 & 33.72873 & 18.80475 & 3.595479 & 13.9868 & 32.6774 \\ \hline \end{tabular}