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Suppose each of two independent projects has a probability of 3% of a loss of $5 million and a probability of 97% of a loss

  1. Suppose each of two independent projects has a probability of 3% of a loss of $5 million and a probability of 97% of a loss of $2 million during a one-year period. When the projects are put in the same portfolio, how much would be the one-year, 96.5% ES for this portfolio?

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