using python :

use python to code:

Question 2 The hedge fund company adopts Valne al Risk (Par) approach to have a better visibility on daily financial market risk situation for all their opening trading positions. See Appendix for more information about VaR. (a) Develop and implement a function HistVaR series, c) that takes in 2 inputs, namely a historical daily time series series and confidence level e. The function computes datly Historical VaR for the respective time series, using percentile as a guide to identify the loss position and extract the loss figure. HSY - percennie serdes. (1-100)*100) (5 marks) (6) Solve and display the key statistics mean, std, min, 25% 50% 75%, max. for time series PC_series), that reflect the daily change in unhedged portfolio's value: Port_unhedged. Port_unlodged - M*5_series PC_sertedl - portfolio_changal Port_nnhedged) dalya Stortinget I 2010 urgapurai M20, (4 marks) Solve for 95% datly Historical VaR for the unhedged portfolio's returns. Hiutat MataR(FC_, 95.) (4 marks) (d) Tllustrate three (3) limitations of Historical VaR Use Markdown to answer (6 marks) c toWE Indicate and provide three (3) suggestions to address these limitations. Use Markdown (6 marks) o Question 2 The hedge fund company adopts Value at Risk (VaR) approach to have a better visibility on daily financial market risk situation for all their opening trading positions. See Appendix for more information about VaR. (a) Develop and implement a function HistVaR series, c) that takes in 2 inputs, namely, a historical daily time series: series and confidence level: c. The function computes datly Historical VaR for the respective time series, using percentile as a guide to identify the loss position and extract the loss figure. HSV - percentile series, (1-1/100)*100) (5 marks) (b) Solve and display the key statistics: mean, std, min. 25%, 50%, 75%, max, for time series PC_series, that reflect the daily change in medged portfolio's value: Port_unhedged Port_nhedged - M*$_series PC _seriest - portfolio_changel Port_unhedged) istorical TaR Starting der tanhedged portfolio? historical Sally alte time series Frame 2010 Intr- M.S, 5. Part (4 marks) (c) Solve for 95% daily Historical VaR for the unhedged portfolio's returns HistVaRI = HistVaR( PC _seriesi, 95) (4 marks) (d) Illustrate three (3) limitations of Historical VAR. Use Markdown to answer. (6 marks) Indicate and provide three (3) suggestions to address these limitations. Use Markdown to answer. (6 marks) Question 2 The hedge fund company adopts Valne al Risk (Par) approach to have a better visibility on daily financial market risk situation for all their opening trading positions. See Appendix for more information about VaR. (a) Develop and implement a function HistVaR series, c) that takes in 2 inputs, namely a historical daily time series series and confidence level e. The function computes datly Historical VaR for the respective time series, using percentile as a guide to identify the loss position and extract the loss figure. HSY - percennie serdes. (1-100)*100) (5 marks) (6) Solve and display the key statistics mean, std, min, 25% 50% 75%, max. for time series PC_series), that reflect the daily change in unhedged portfolio's value: Port_unhedged. Port_unlodged - M*5_series PC_sertedl - portfolio_changal Port_nnhedged) dalya Stortinget I 2010 urgapurai M20, (4 marks) Solve for 95% datly Historical VaR for the unhedged portfolio's returns. Hiutat MataR(FC_, 95.) (4 marks) (d) Tllustrate three (3) limitations of Historical VaR Use Markdown to answer (6 marks) c toWE Indicate and provide three (3) suggestions to address these limitations. Use Markdown (6 marks) o Question 2 The hedge fund company adopts Value at Risk (VaR) approach to have a better visibility on daily financial market risk situation for all their opening trading positions. See Appendix for more information about VaR. (a) Develop and implement a function HistVaR series, c) that takes in 2 inputs, namely, a historical daily time series: series and confidence level: c. The function computes datly Historical VaR for the respective time series, using percentile as a guide to identify the loss position and extract the loss figure. HSV - percentile series, (1-1/100)*100) (5 marks) (b) Solve and display the key statistics: mean, std, min. 25%, 50%, 75%, max, for time series PC_series, that reflect the daily change in medged portfolio's value: Port_unhedged Port_nhedged - M*$_series PC _seriest - portfolio_changel Port_unhedged) istorical TaR Starting der tanhedged portfolio? historical Sally alte time series Frame 2010 Intr- M.S, 5. Part (4 marks) (c) Solve for 95% daily Historical VaR for the unhedged portfolio's returns HistVaRI = HistVaR( PC _seriesi, 95) (4 marks) (d) Illustrate three (3) limitations of Historical VAR. Use Markdown to answer. (6 marks) Indicate and provide three (3) suggestions to address these limitations. Use Markdown to answer. (6 marks)