The following shows the historical return series of Stock C. Day Daily Return of Stock C Day Daily Return of Stock C 1 16 9.0% 16.0% 1.0% 7.0% 19.0% 4.0% 14.0% 11.0% 6.0% 11.0% 1.0% 2.0% 2.0% 6.5% 3.2% E 2 III) 3 4 5 6 7 00 8 9 10 11 12 13 14 15 12.0% 12.0% -10.0% 0.5% 2.0% 4.0% 0.0% 5.0% 9.0% 28.0% -50.0% 10.0% 6.0% 4.5% 1.0% 17 18 19 20 21 7222 23 24 What is the 90% daily Value-at-Risk of an $1 million investment in stock C? [1 mark] ii) What is the 90% daily Expected Shortfall of an $1million investment in stock C? [1 mark] Using the results in part ii) and iii), explain why expected shortfall is more desirable than value-at-risk when used in regulatory requirement. [4 marks] 25 26 27 28 29 30