Question: The expected shortfall ( ES ) is regarded as a better measure of risk compared with Value - at - Risk ( VaR ) because

The expected shortfall (ES) is regarded as a better measure of risk compared with Value-at-Risk (VaR) because
Options:
1. VaR has been abandoned by most commercial banks.
2. ES takes into account both the chance of extreme exceedances and magnitudes of these extreme exceedances.
3. ES is a perfect measure of risk.
4. ES is easier to calculate.

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