What is the difference between the bottom$-$up and top$-$down approaches to estimating Economic Capital?

Question $10$Answer

a$.$

The bottom$-$up approach is more complex than the top$-$down approach

b$.$

The bottom$-$up approach is more precise than the top$-$down approach

c$.$

The bottom$-$up approach focuses on asset volatility while the top$-$down approach focuses on earnings volatility

d$.$

The bottom$-$up approach is used for business decision$-$making while the top$-$down approach is used for financial performance evaluation