Consider the Following Discrete Probability Distributions of Payoffs for 3

question 54

Multiple Choice

Consider the following discrete probability distributions of payoffs for 3 securities that are held in a DI's trading portfolio (payoff amounts shown are in $millions) : What is the expected shortfall (ES) of securities Alpha and Beta at the 99 percent confidence level, respectively (in millions) ?

• A)-$300 and -$3,300
• B)-$3 and -$24.75
• C)-$3 and -$25.50
• D)-$300 and -$300
• E)-$ and -$0.75.

---

Definitions:

Affirmative Action

Policies or measures that aim to increase opportunities for historically disadvantaged groups by considering those group memberships in decisions.

Reverse Discrimination

Discrimination against members of a dominant or majority group, often as a result of policies intended to correct discrimination against minority or disadvantaged groups.

EEO

Equal Employment Opportunity, a principle that ensures fair treatment to all employees and job applicants irrespective of race, color, religion, sex, national origin, age, disability, or genetic information.

Americans with Disabilities Act

A civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places open to the general public.