Question: Consider the following statements: Statement 1: VaR can be defined as the maximum loss expected over a holding period a certain percentage of the time.

Consider the following statements:

Statement 1: VaR can be defined as the maximum loss expected over a holding period a certain percentage of the time.

Statement 2: It is easier for an investor to control risk than to control returns and riskadjusted returns.

Which of the following is most likely?

a) Only Statement 1 is correct.

b) Only Statement 2 is correct.

c) Both statements are incorrect.

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