VaR is (a) An exact science that yields exact estimates (b) An educated estimate of market risk (c) A risk management tool (d) The variability of a portfolio (e) Both b and c ...

The correct answer is e Both b and c Value at Risk VaR is both an educated estimate of marke ...

VaR is: (a) An exact science that yields exact estimates. (b) An educated estimate of market risk.

Question:

VaR is:

(a) An exact science that yields exact estimates.

(b) An educated estimate of market risk.

(d) The variability of a portfolio.

(e) Both b and c.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Implementing Enterprise Risk Management Case Studies And Best Practices

ISBN: 9781118745762

2nd Edition

Authors: John Fraser, Betty Simkins, Kristina Narvaez

See More Books

Question Posted: Feb 03, 2024 11:57 PM

See More Questions

Now we are going to see how the computational complexity scales with the size of our Nx N matrix. Write a loop from N=1 to 100 that: creates matrix of size N with random entries, calls GE_count for...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Let A, B be sets. Define: (a) the Cartesian product (A B) (b) the set of relations R between A and B (c) the identity relation A on the set A [3 marks] Suppose S, T are relations between A and B, and...
Lowell Inc. projects unit sales for a new project with a life of FOUR YEARS as follows: year 1 = Unit sales 10,000 Year 2 = Unit sales 12,000 Year 3 = Unit sales 14,000 Year 4 = Unit sales 16,000...
Coherent light rays of wavelength A strike a pair of slits separated by distance d at an angle θ1 as shown in Figure P37.14. Assume an interference maximum is formed at an angle θ2 a...
a. Why are ratios useful? What are the five major categories of ratios? b. Calculate the 2016 current and quick ratios based on the projected balance sheet and income statement data. What can you say...
A young girl and her mother are swinging on a swing set. Who, if either, has the longer period of oscillation? Explain.
The post-closing trial balances of two proprietorships on January 1, 2014, are presented below. Utech and Flott decide to form a partnership, Commander Company, with the following agreed upon...
02/01/2023 Pay Phoenix Insurance $600 for 6 months of liability insurance using the company VISA credit card. Add Phoenix Insurance as a new Vendor. Record full amount as Liability Insurance Expense....
Back-testing VaR is: (a) Not relevant. All of the underlying assumptions are correct and hold in reality. Similar assumptions are used in most financial models. (b) Extremely important. There are...
Actual losses __________ the calculated level of VaR can occur: (a) Greater than (b) Less than (c) Equal to (d) Both b and c (e) All of the above.
What is an interrupt address vector?
In your opinion, what is the greatest barrier to ensuring the quality of data used for performance measurement purposes? Support your opinion with literature references.
Briefly explain the objective of: (i) Compliance procedures, and (ii) Substantive procedures. For each of these objectives give one example of an audit procedure which is designed to meet that...
Consider the information from Problem 24-13. If the total costs of producing 13 units were equal to $72.70 per week, would the marginal revenue of producing the 13th unit be greater or less than the...
Describe how you use the cycle of measurement, assessment, and improvement (see exhibit 2.1) to evaluate and make changes in your personal life. Yes Measurement How are we doing? Assessment Are we...
In Figure 3-7, what are the effects of a price decrease from $5 per wireless earbud to $3 per wireless earbud on the quantities supplied by supplier 1 and by supplier 2 individually and combined?...
1. Accounts Receivable has a beginning balance of $425,000 and an ending balance of $437,000. Cash collected from customers during the period was $1,263,000. Sales for the period were: (a)...
Solve for the equilibria of the following discrete-time dynamical systems Pr pt+1 = Pr+2.0(I-Pr)
Why do propertycasualty insurance companies hold more capital than life insurance companies?
An insurance company decides to offer individuals insurance against losing their jobs. What problems is it likely to encounter?
How does health insurance in the United States differ from that in Canada and the United Kingdom?
How do advancements in neuroscience and psychology shed light on the neurobiological processes underlying identity development, including the formation of self-concept, identity consolidation, and...
How has Pringles and Popchips brand applied the 4P's? Why have they applied the 4P's in this way? Which brand has been most successful in its application of the 4P's? How could each of the brands...
PRODUCT'S NAME : Body ID . Unlike Face ID, That product allows people to come into their house through their body features. It allows them to come into their house effortless and contactless. ...

VaR is: (a) An exact science that yields exact estimates. (b) An educated estimate of market risk.

Question:

Step by Step Answer:

The correct answer is e Both b and c Value at Risk VaR is both an educated estimate of marke...View the full answer

Implementing Enterprise Risk Management Case Studies And Best Practices

Students also viewed these Business questions