Suppose you have a portfolio of 2 stocks with equal weights and the following risk-return characteristics. Assume that the covariance between the returns of these stocks is -0.10. The standard deviations for the returns of Stock A and Stock B are o A = 0.6 and 0B = 0.3. The expected returns for Stock A and Stock B are 12% and 10% (1) Calculate the CVaR (or expected shortfall, ES) for Stock A at 5% downside risk (or 95% confidence level with critical z at -1.645). If you have $10,000 invested in Stock A, what is the maximum amount of your expected loss associated with holding this stock at 5%? (2) No calculation required: How does the CVaR for your portfolio change as i) the covariance change from -0.10 to +0.10, and ii) volatility (as measured by standard deviations) of the two stocks increase? Suppose you have a portfolio of 2 stocks with equal weights and the following risk-return characteristics. Assume that the covariance between the returns of these stocks is -0.10. The standard deviations for the returns of Stock A and Stock B are o A = 0.6 and 0B = 0.3. The expected returns for Stock A and Stock B are 12% and 10% (1) Calculate the CVaR (or expected shortfall, ES) for Stock A at 5% downside risk (or 95% confidence level with critical z at -1.645). If you have $10,000 invested in Stock A, what is the maximum amount of your expected loss associated with holding this stock at 5%? (2) No calculation required: How does the CVaR for your portfolio change as i) the covariance change from -0.10 to +0.10, and ii) volatility (as measured by standard deviations) of the two stocks increase