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9. (a) Suppose that, in Question 4, five stress scenarios are considered. They lead to losses ($0005) of 235, 300, 450, 750, and 850. The probabilities assigned to the scenarios are 0.5%, 0.2%, 0.2%. 0.05%, and 0.05%, respectively. The total probability of the stress scenarios is, therefore 1%. This means that the probability assigned to the scenarios generated by historical simulation is 99%. Assuming that equal weighting is used. Compute the 1-day 9996 expected shortfall. (3 marks} (b) For the purpose of estimating operational risk, describe the 3 steps of how loss- frequency distribution can be combined with the loss severity distribution to determine a loss distribution using MonteCarlo simulation. (3 marks}