Question: When assessing tail risk by looking at the 5 worstcase scenario, the VaR is the a. Most optimistic as it takes the highest return (smallest

When assessing tail risk by looking at the 5 worstcase scenario, the VaR is the

a. Most optimistic as it takes the highest return (smallest loss) of all the cases

b. Most optimistic as it takes the highest return (smallest loss) of all the cases

c. Most realistic as it is the most complete measure of risk

d. Most optimistic as it is the most complete measure of risk

Step by Step Solution

★★★★★

3.31 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The question seems incomplete due to repeated options and lacks one potentially correct option relat... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Q:

The CEO of Kuehner Development Co. has just come from a meeting with his marketing staff where he was given the latest market study of a proposed new shopping center, Parker Road Plaza. The study...

Q:

By looking at the region in Figure 9 first vertically and then horizontally, conclude that And use this fact to calculate: (a) (b) xÌ, the horizontal coordinate of the centroid of the region?...

Q:

Spend some time studying Patagonia, by looking at the companys Web site and its Facebook page, and via other Internet searches. Describe Patagonias general approach to business ethics, social...

Q:

By looking at the a and b values for the van der Waals equation of state, decide whether 1 mole of O 2 or H 2 O has the higher pressure at the same value of T and V.

Q:

When assessing tail risk by looking at the 5% worst-case scenario, the VaR is the most realistic, as it is the most complete measure of risk. most pessimistic, as it is the most complete measure of...

Q:

1 2 When assessing tail risk by looking at the 5 % worst - case scenario, the VaR is the Multiple Choice 0 1 : 0 2 : 0 2 most realistic, as it is the most complete measure of risk. most pessimistic,...

Q:

When assessing tail risk by looking at the 1 % worst - case scenario, the VaR is the: A ) None of the options are correct. B ) most realistic, as it is the most complete measure of risk. C ) most...

Q:

When assessing tail risk by looking at the 1 % worst - case scenario, the VaR is the: Multiple Choice most realistic, as it is the most complete measure of risk. most pessimistic, as it is the most...

Q:

Please create an excel spreadsheet with formulas for requirement 5 (pages 24-27)and requirement 6 (pages 28-31)only. Please submit in excel format. Both questions and answers are provided for...

Q:

Your end-of-semester assignment is as follows: (a) (i) read the two Economist articles entitled ?Debt is Good for You? (dated 01/25/2001) and ?Debtors? Prison? (dated 02/09/2009), which discuss the...

Q:

Please help with the assigned discussion. The hyperlinks are attached. MY COMPANY IS WALMART Assigned Discussions: 1. Develop and explain a recommended corporate strategy for the selected company....

Q:

Please refer to the financial statements for Roxbury Corporation. Estimate the length of Roxbury's cash conversion cycle in 2017. INCOME STATEMENT Net sales Cost of goods sold GS&A expense EBIT...

Q:

The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold $165,000 17,600 Income Tax Expense Merchandise Sales (gross revenue) for Cash Merchandise...

Q:

A control system, as shown in Figure E7.17, has a process G(s) = 1 s(S-1)

Q:

List 3 non-hydrocarbon (inorganic) components of reservoir fluids and describe their importance in industrial processes with no more than 5 sentences.

Q:

Which homologous series of hydrocarbons has the most reactivity? What is the type of bonding in this series? (ionic, covalent, single, double ect). How do the physical properties vary in a homologous...

Q:

Chemical formulas for some commonly occurring hydrocarbon components in petroleum fluids are given below. Identify the name of these components and the hydrocarbon group and the family(homologous...

Q:

1-6. Consider again Fig. 1.12. Now let the 14-kg weight hang from the mid- dle of the lower arm (20 cm from the fulcrum). Calculate the biceps force and the reaction force at the joint.

Q:

1. According to the existing IFRS and the CICA Handbook Part II guidelines, which of the following is not an essential characteristic of a liability? A) It embodies a duty or responsibility. B) The...

Q:

Squaretire, Inc., a small producer of automobile tires, has the following production function: Q = 100K0.5L0.5 During the last production period, the firm operated efficiently and used input rates of...

Q:

The last exam will cover these 3 tests plus a few small quizzes. The attached should give you a good idea of the material. Let me know if you have any questions. You can see which I got correct with...

Q:

1. Texas Roadhouse (TXRH) is rapidly expanding into new markets and had sales of $1,263M in 2012. Suppose you expect sales to grow at a 15% rate in 2013, but this rate will slow by 2% per year to a...

Q:

Please answer this question.. Very easy. -What sources of value most plausibly account for the differences between buyer and seller? -Structure and execute a discounted cash flow valuation of all of...

Q:

Read Chapter 6 of the book "How to measure anything". Now, write a letter to Mr. Williams, starting with the following statement: "Mr. Williams, currently you work with categorical risk metrics...

Q:

Please help me to answer the following file ............................................................................................... INVESTMENT AND PORTFOLIO MANAGEMENT COURSE ASSESSMENT 1...

Q:

Question : Reading 9 :What does it mean to be risk averse or risk neutral? How important is it to evaluate risk and to evaluate how sensitive to risk any business, personal, or academic decision you...