5. Using data from question 5, compute mean and standard deviation for SPY and LQD returns, and the correlation between their returns. a. Assuming returns are normal, compute the 99% confidence level VaR and ES for each of these position as a standalone investment, and for the portfolio. b. Using parameter estimates in a, compute the dollar benefits (or lack thereof) of diversification for reducing YaR. c. Using the portfolio mean and SD you found in a, simulate 500 returns. That is, you generate 500 random data points (as 500 days) for the portfolio, Compute the 99% confidence level VaR and ES using this data. d. Compare and comment on your portfolio VaR estimates from 5 (historical method), 6.a (analytical or model-building approach), and 6.c (simulation). 5. Using data from question 5, compute mean and standard deviation for SPY and LQD returns, and the correlation between their returns. a. Assuming returns are normal, compute the 99% confidence level VaR and ES for each of these position as a standalone investment, and for the portfolio. b. Using parameter estimates in a, compute the dollar benefits (or lack thereof) of diversification for reducing YaR. c. Using the portfolio mean and SD you found in a, simulate 500 returns. That is, you generate 500 random data points (as 500 days) for the portfolio, Compute the 99% confidence level VaR and ES using this data. d. Compare and comment on your portfolio VaR estimates from 5 (historical method), 6.a (analytical or model-building approach), and 6.c (simulation)