The trading company "XYZ Finance" wants to purchase some amount of government bond. Three types of government bond are u

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The Trading Company Xyz Finance Wants To Purchase Some Amount Of Government Bond Three Types Of Government Bond Are U 1 (66.64 KiB) Viewed 55 times

The trading company "XYZ Finance" wants to purchase some amount of government bond. Three types of government bond are under consideration. They are issued by the countries "Wakanda", "Atlantica", "Empire City", and "Lala Land". A consultant Lee is hired by the company to evaluate the risk of each bond. Based on the historical data, he has succeeded in finding the loss function of each bond. The following is the summary and all the units are dollars ($). • Loss function of the Bond by Atlantica (Y) N(13000, 2000²) Exp(1/13000) • Loss function of the Bond by Empire City (Z) N ● Loss function of the Bond by Lala Land (W) Uniform(9000, 17000) • Loss function of the Bond by Wakanda (X)~ Discrete Distribution as follows: Loss ($) 10000 11000 12000 13000 14000 15000 16000 N PDF 0.15 0.2 0.3 0.15 0.1 0.05 0.05 Question 1-1. Please find VaRa 0.95 (X), VaRamo 95(Y), VaRa=0.95(2), VaR=0.95 (W)? Which one has the largest VaR value?