Suppose that two projects A and B have a 0.7% chance of a loss of $ 8 million, a 2.3% chance of a loss of $1 million, and a 97% chance of a profit of $1 million. The losses on these two investments are distributed independently of each other. Required:
a. What is the VaR for one of the investments when the confidence level is 99%?
b. What is the expected shortfall (ES) for one of the investments when the confidence level is 99%?
c. Show the probability distribution of losses/profits for a portfolio consisting of both investments. You need to determine all possible losses/gains on this portfolio and calculate corresponding probabilities.
d. What is the VaR when of the portfolio consisting of both investments when the confidence level is 99%?
e. What is the expected shortfall to a portfolio consisting of the two investments when the confidence level is 99%?
f. Based on your findings, what is your conclusion about the shortcoming of VaR as opposed to using ES?

85.560%

step-by-step explanation:

conditional probability is defined as:

p(a|b) = p(a∩b) / p(b)

in other words, the probability that a occurs, given that b has occurred = the probability that both a and b occur / the probability that b occurs.

in this example:

p(turns 64 | turns 44) = p(turns 64 & turns 44) / p(turns 44).

if someone turns 64, they must have already turned 44, so:

p(turns 64 | turns 44) = p(turns 64) / p(turns 44)

on page 42, we see that of the original 100,000, 94944 turn 44, and 81234 turn 64.   therefore:

p(turns 64 | turns 44) = 81234 / 94944

p(turns 64 | turns 44) = 0.85560

then say something, tell them they won’t respect you if you don’t even have respect for your self sweetheart you need to lay it on them, all of it : )

can someone me: the midsegment through the legs of an isosceles triangle is 4 in. find the sides of the triangle if its perimeter is 20 in. ,   and point g is the centroid of the right △abc with hypotenuse ab=18 in. find cg.