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please use excel Consider two investments. Each has a 5% chance of a loss of $10 million, a 2% chance of a loss of $0.25
please use excel
Consider two investments. Each has a 5% chance of a loss of $10 million, a 2% chance of a loss of $0.25 million, and a 93% chance of a profit of $1 million. They are independent of each other. a. What is the 95% confidence level VaR for each of the investments? b. What is the 95% confidence level ES for each of the investments? c. What is the 95% confidence level VaR for a portfolio consisting of the two investments when the confidence level is 95%? d. What is the 95% confidence level ES for a portfolio consisting of the two investments when the confidence level is 95%? Consider two investments. Each has a 5% chance of a loss of $10 million, a 2% chance of a loss of $0.25 million, and a 93% chance of a profit of $1 million. They are independent of each other. a. What is the 95% confidence level VaR for each of the investments? b. What is the 95% confidence level ES for each of the investments? c. What is the 95% confidence level VaR for a portfolio consisting of the two investments when the confidence level is 95%? d. What is the 95% confidence level ES for a portfolio consisting of the two investments when the confidence level is 95%Step by Step Solution
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