Question: Please answer questions 11 & 12 and show work. Thank you! The following information relates to questions 11-12: Suppose for a one-year project all outcomes
The following information relates to questions 11-12: Suppose for a one-year project all outcomes between a loss of $50 million and a gain of $50 million are considered to be equally likely. In this case, the loss from the project has a uniform distribution extending from $50 million to +$50 million. Hint for these two questions - See Example 12.2 on page 258 of Chapter 12. (Enter your answer for both questions as a positive number, which is the amount of the loss expected, rounded to the nearest million dollars with no $ sign and without the word million). 11. What would be the Value at Risk (VaR) for this project with a one-year time horizon and a 95% confidence level? (5 points) 12. What would be the Expected Shortfall (ES) for this project with a one-year time horizon and a 95% confidence level? (5 points)
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