QUESTION 3: As part of your analysis (of KCI), you calculated 120 annualized monthly returns for KCI over the last 10 years. The table below ranks all 120 returns from the highest (139.273%) to the lowest (-32.67%). 139.273 70.76973 33.44157 17.00694 1.550874 -15.8386 121.7082 70.5349 33.18402 16.97665 -0.15624 -16.9035 113.9808 66.92517 32.3891 16.28518 -0.1896 -17.8971 100.2383 64.0577 31.94998 16.2251 -1.37588 -19.4071 92.42082 60.96641 30.31605 14.47807 -1.52071 -20.0354 91.93812 60.67967 30.19054 14.18202 -2.03423 -20.5656 89.99992 60.17686 29.86178 13.94073 -2.29625 -20.6563 89.86038 53.92727 29.59561 13.86196 -3.15612 -21.8039 87.90029 51.56665 28.28468 13.7793 -3.23564 -22.3595 87.18278 49.2718 27.74365 11.95869 -3.53277 -24.1948 86.08503 45.21356 26.95561 11.79736 -6.23721 -25.4556 85.51272 43.4514 25.71885 10.87671 -7.27602 -25.528 84.4945 42.73858 25.29337 10.82257 -8.0988 -25.5845 81.81487 39.77079 23.84009 10.22539 -9.40545 -26.2212 78.6193 38.85159 23.02676 9.096353 -9.42206 -26.9046 77.33038 38.82887 22.16073 8.758075 -9.96044 -27.5972 75.42571 38.75575 21.56512 7.760949 -11.3582 -29.2348 74.77076 35.90144 19.95164 6.033329 -11.9791 -29.7546 73.2764 33.87951 19.72466 4.267272 -13.6546 -30.2648 72.00631 33.72873 18.80475 3.595479 -13.9868 -32.6774 a. Calculate the 4% VaR. (4 points) b. Calculate the expected shortfall (ES) at the 4% level. (4 points) c. Which of these measures is the most "pessimistic" estimate of the riskiness of KCI? Explain your rationale. (3 points) d. If you decide to calculate semivariance and the lower partial standard deviation, which of these measures generates a more pessimistic view of risk [this question does not involve a calculation]. (3 points)