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The probability density function (PDF) for daily profits at Square Inc. can be described by the following piecewise function (see figure below),p= 8/100for 100p= 2/100for

The probability density function (PDF) for daily profits at Square Inc. can be described by the following piecewise function (see figure below),p= 8/100for 100p= 2/100for 0+10

a) What is the one-day 99% VaR for Square Inc.?

b) What is the one-day 99% ES for Square Inc.?

What is the difference in finding 95% vs. 99%?

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