Which of the Following Is True About the Relationship of SEM

question 1

Multiple Choice

Which of the following is true about the relationship of SEM to multiple regression techniques?

• A)SEM is similar to multiple regression when exogenous constructs are used to predict endogenous constructs.
• B)It is different from multiple regression because the dependent construct in one relationship may become the independent construct.
• C)It is different from multiple regression because the all of the equation are estimated simultaneously.
• D)A and C are correct.
• E)A,B and C are correct.

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Definitions:

Value At Risk

A financial metric used to estimate the potential loss in value of a portfolio over a defined period for a given confidence interval.

Extreme Negative Returns

Significantly below-average returns, often considered outliers, that can severely impact an investment's overall performance.

Expected Shortfall

A risk measure that estimates the expected loss of a portfolio in the worst-case scenario of a given percentage of times.

Lower Partial Standard Deviation

A measure of the downward variation or downside risk of an asset's returns, focusing only on returns that fall below a minimum threshold or target.