Question: 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

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 risk.

most optimistic, as it takes the highest return (smallest loss) of all the cases.

most optimistic, as it is the most complete measure of risk.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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 Finance Questions!

Q:

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...

Q:

when assessing tail risk by looking at the 5% worst-case scenario, the VaR is the?

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:

When assessing tail risk by looking at the 5 % worst - case scenario, the most realistic measure ( s ) of downside exposure would be Group of answer choices expected shortfall. value at risk....

Q:

When assessing tail risk by looking at the 5% worst-case scenario, the most realistic view of downside exposure would be Multiple Choice expected shortfall. value at risk. conditional tail...

Q:

When assessing tail risk by looking at the 5% worst-case scenario, the most realistic view of downside exposure would be

Q:

Chapter 3 Describe and explain the terms climate sensitivity, fat tail, and low beta, and how they relate to climate change. What are the estimated economic costs of global warming? Can we trust...

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:

Steinbach Veterinary Hospital Inc. provides health care for pets and farm animals in a Manitoba community. During 2017, Steinbach made the following expenditures. Indicate whether each expenditure...

Q:

It is asserted that 80% of the cars approaching an individual toll booth in New Jersey are equipped with an E-ZPass transponder. Find the probability that in a sample of six cars: a. All six will...

Q:

Saad s credit card company charges its customers an annual interest of 2 1 . 0 % on the outstanding monthly balance. The effective annual rate for the customer will be: Question 3 5 Select one: a . 2...

Q:

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".