Worst-caseoperational risk loss

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Suppose that there is a 1% probability that operational risk losses of a certaintype exceed $10 million. Use the power law to estimate the 99.97% worst-caseoperational risk loss when the a parameter equals

(a) 0.25,

(b) 0.5,

(c) 0.9,and

(d) 1.0

Reference no: EM131034956

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