Consider two stocks X and Y with daily returns given by a bivariate normal distribution of the form: [rArB]N(AB[A2ABABA2]) Let A=0.03%,B=0.06%,A=1%,B=2%,=0.5 and assume that the time window is 10 days and the confidence level 99% for both VaR and ES. Simulate 10,000 days for the returns of the two stocks and answer the following: a. Find the theoretical VaR and ES for both stocks using the formulas seen in class. b. Calculate the VaR and ES for both stocks from the simulated sample. Compare your results with part b. c. Now assume that you have a portfolio C with return given by rC=wrA+(1w)rB If w=0.5, what are the simulated 10 -day 99%VaR and ES for the returns of portfolio C? Comment on your results