The current market price of General Electric is $10.50 and the distribution of General Electrics stock price is described below:

Price ($)	5	8	9	10	11	12	15
Probability	0.01	0.03	0.2	0.52	0.20	0.03	0.01
Losses	-5.50	-2.50	-1.50	-.50
Profits					.50	1.50	4.50

Construct the distribution of losses/profits on this stock ES =

Compute the 95% VaR and the expected shortfall.

Continue with the previous exercise, but suppose that the lowest price is changed from $5 to $0. Will VaR change?

Will expected shortfall change? If it does change, calculate the new expected shortfall

Suppose that the price of an asset at close of trading yesterday was $300 and its volatility was estimated as 1.3% per day. The price at the close of trading today is $298. Update the volatility estimate using