1.To show a typical bell-shaped distribution in Excel,

a.sort the data and plot in a scatter diagram.

b.sort the data and plot in a histogram.

c.plot the data as they occurred, with the values on the y-axis and the date on the x-axis.

2.Continuous discounting involves

a.natural logs and raising "e" to various powers.

b.APRs and APYs.

c.trigonometric functions.

d.power function distributions

3.The advantage of continuous discounting in analyzing historical data is that

a.the calculation of returns is more accurate and easy to explain.

b.compounded returns are calculated by the addition of short-term returns, and the same up and down returns arrive at the same starting investment value.

4.Extreme Value Theory (EVT) includes estimating a mathematical model to fit the large values in the middle of a distribution that is more peaked than a Normal distribution.

a.True

b.False

5.Value at Risk (VaR) identifies an average loss that might occur, given that a loss takes place for an event that occurs in the tails of a distribution.

a.True

b.False

6.Expected Shortfall (ES) identifies a single value for an estimate of a loss that might occur or worse, in a given time period at a stated probability for an undesirable event.

a.True

b.False

7.The term "volatility" generally means the standard deviation of the potential outcomes from a distribution.

a.True

b.False

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