Problem 1. Consider a portfolio with three stocks Si. At period n = 0 the values of the stocks are Sy = 150, $a = 200, S3 = 350. Assume that in our portfolio we have two units of S, and one unit of S2 and S3. If at period n=1 each stock dropped by 100 units, calculate (a) The portfolio loss over the given period [0, 1]. (b) The portfolio delta loss over the given period [0, 1]. (c) Find the relative error of the approximation in (b) and justify the result. Problem 1. Consider a portfolio with three stocks Si. At period n = 0 the values of the stocks are Sy = 150, $a = 200, S3 = 350. Assume that in our portfolio we have two units of S, and one unit of S2 and S3. If at period n=1 each stock dropped by 100 units, calculate (a) The portfolio loss over the given period [0, 1]. (b) The portfolio delta loss over the given period [0, 1]. (c) Find the relative error of the approximation in (b) and justify the result