Suppose that each of two investments has a 3% chance of a loss of $10...
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Finance
Suppose that each of two investments has a 3% chance of a loss of $10 million, a 2% chance of a loss of $5 million, and a 95% chance of a loss of $1 million. They are independent of each other.
What is the expected shortfall for one of the investments when the confidence level is 95%?
Group of answer choices
$7 million
$6 million
$7.5 million
$8 million
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