Could you help giving me explanations on this problem ? Thank you.

, _ ' ' ,1 Consider a portfolio consisting of 10,000 shares of Apple stock and 5,000 shares of TMobile stock. Apple's current share price is $125 and TMobile's current share price $140. Assume that Apple's annual volatility is 25%, T-Mobile's annual volatility is 30%, and that the correlation between both stock prices's daily returns is 0.4. (a) Compute the 10-day 99% value-at-risk of the stock portfolio. (b) Compute the 10-day 99% expected shortfall of the stock portfolio. (c) Quantify the benet of diversication in the portfolio with respect to the value-atrisk computed in (a). W'hat is the reason for this effect? Remark: Assume 252 trading days per year. Moreover, for the standard normal distribution recall that the 99%Quantile is given bv 2.3253