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You have been estimating the Value-at-Risk of Qantas (QAN) shares, but you notice that the return distribution has particularly fat tails. Explain the effect of

You have been estimating the Value-at-Risk of Qantas (QAN) shares, but you notice that the return distribution has particularly fat tails. Explain the effect of the fat tails in the return distribution on your VaR measure. Discuss how the Expected Shortfall (ES) measure could improve our understanding of the tails of the distribution.

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