1. Assume you are long $1 of the S&P 500 index on each day. Calculate the 1-day, 1%VaRs on each day in October 1987 using historical simulation and weighted historical simulation. You can ignore the linear interpolation part of WHS. Use a weighting parameter of η = 0.99 in WHS. Use a 250-day moving sample size for both HS and WHS. (Excel Hint: Sort the returns along with their weights by selecting both columns in Excel and sorting by returns.) Plot losses and VaRs from HS and losses and VaRs from WHS in two different figures. Compare your result with Figure 5.2. Note that we are comparing losses (i.e., negative returns) with VaRs denoted as positive numbers.