Please answer all parts, thank you.

Question 2. (5 points + 1 Extra Credit point) Marginal Product, Inc. has 4,900 workers located at plants in many different locations. The company is concerned with workplace injury losses. Based on historical data, Marginal estimates that the loss per worker per year is $300 and the standard deviation of losses per worker is $1,000. 2.1. (1 point) Using standard deviation as a risk measure, what is the (expected) total risk for Marginal Product's loss portfolio (consisting of 4900 workers) for the coming year? 2.2. (2 points) Using standard deviation as a risk measure, what is the (expected) risk of per unit of loss exposure of Marginal Product's loss portfolio (consider each worker as a unit of risk exposure)? How does it compare to the unit risk when each worker is considered separately, i.e., not as part of a portfolio? What is the implication? 2.3. (1 point) Comment on how your answer to 2.2. might change if each worker's losses are different (i.e., their expected losses and standard deviation of losses are different). 2.4. (1 point) What is Marginal Product's Value at Risk (for the coming year) at the 95% level? (Hint: note that critical value for standard Normal distribution at 5% tail is 1.645) 2.5. (Extra Credits: 1 point) Now assume that the correlation between any two loss exposures is 0.2. Using standard deviation as a risk measure, what is the expected total risk for Marginal Product for the coming year? Describe (i.e., no need to calculate out) how you would calculate the risk of Marginal Product's loss portfolio using maximum probable loss (i.e., Value at Risk) at the 95% level as a risk measure