Q25. A project manager reports that the one-year 95% expected shortfall for a project is $10 million. Which one of the interpretations is correct: A. We expect to lose $10 million from this project over the one-year horizon B. We should not take this project, since it's expected shortfall is negative C. If the project turns out to generate the 5% worst outcomes, then we expect to lose $10 million D. None of the above Q26. Which one of the arguments below correctly describes the advantage of value- at-risk relative to delta and duration to measure the risk exposures of a company: A. Value-at-risk summarizes the total risk exposures of a company in one single number, so it is easier for senior managers to digest the company-level risk exposures with limited time B. Delta tells us more details about the specific risk exposures of a firm. If we already know the deltas, value-at-risk is redundant C. Value-at-risk can only be applied to summarize the total risk exposure of a company, while delta can be calculated for any single asset held by our firm D. None of the above