Ex. 3. Compute the VaR and Expected-Shortfall (ES) for (i) the normal distribution with mean ,u = 0 and standard deviation 0.2 X 10000 / x/250 and (ii) the student's t5 distribution with the same values of p: and 02 = #VaL), where L is the portfolio loss. (Note that if we assume that the horizon is A = 1 day, then a value of .2 / m corresponds to an annual volatility of approx 20%. The value of 250 corresponds to the fact that there are approx. 250 trading days in a calendar year. The multiplier of 10000 is there simply to make the numbers more readable.) You should compute the V33. and ES for the following values of a = 0.90, 0.95, 0.975, 0.99, 0.995, 0.999, 0.9999, 0.99999, 0.999999. What do you notice? Now, compute the ES to VaR ratio for each value of (1:. You should report all your results in a table using the same format as in the lecture notes