Estimate the worst-case operational risk loss

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Question:

Suppose that there is a 1% probability that operational risk losses of a certain type exceed $10 million. Use the power law to estimate the 99.97% worst-case operational risk loss when the ? parameter equals (a) 0.25, (b) 0.5, (c) 0.9, and (d) 1.0

Reference no: EM131034168

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