Which of the Following Items Is Not Considered to Be

question 95

Multiple Choice

Which of the following items is not considered to be an advantage of using back simulation over the RiskMetrics approach in developing market risk models?

• A)Back simulation is less complex.
• B)Back simulation creates a higher degree of confidence in the estimates.
• C)Asset returns do not need to be normally distributed.
• D)The correlation matrix does not need to be calculated.
• E)A worst-case scenario value is determined by back simulation.

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Definitions:

CMS-1500

A standardized form used for submitting provider services for insurance billing in the United States.

Third-Party Claim

A claim filed by an individual or entity to an insurance company for losses or damages caused by another policyholder.

Co-Pay Receipt

A document or proof of payment indicating the portion of a healthcare service fee that a patient pays out of pocket.

Explanation of Benefits (EOB)

A document provided by insurance companies to members detailing the costs covered and owed for healthcare services received.