Question: 4. The probability density function (pdf) for daily profits at Rectangle Inc. can be described by the following piecewise function (see figure below), p =

4. The probability density function (pdf) for daily profits at Rectangle Inc. can be described by the following piecewise function (see figure below),

p = 1/24 for 12 0

p = 1 20 for 0 +10

a) [6 points] What is the one-day 95% VaR for Rectangle Inc.?

b) [12 points] What is the one-day 95% ES for Rectangle Inc.?

Please see attached picture for clarification

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