The probability density function for daily profits at M Inc. can be described by the following piecewise function:

We are instructed to find the day 99% Value at Risk (VaR) for M Inc. as well as the 99% expected shortfall (ES) for M Inc. An example of how to calculate ES for a similar example with a 95% VaR as a loss of 9 is shown below:

p = 8 100 for -10