Question: Verify (11.2.4). *3. Implement the algorithm of calculating ETL for given P/L density function. Analyze the algorithm accuracy as a function of the number of

Verify (11.2.4).

*3. Implement the algorithm of calculating ETL for given P/L density function. Analyze the algorithm accuracy as a function of the number of integration points by comparing the calculation results with the analytic expression for the normal distribution (11.2.4).

**1. Discuss the derivation of the GARCH process with the agentbased model [21]. **2. Discuss the insider trading model [22]. How would you model agents having knowledge of upcoming large block trades? **3. Discuss the parsimony problem in agent-based modeling of financial markets (use [16] as the starting point). **4. Discuss the agent-based model of business growth [23]. **5. Verify if the model (12.4.1)–(12.4.7) exhibits a price distribution with fat tails.

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