The Use of Expected Shortfall (ES) Is Most Appropriate When

question 65

Multiple Choice

The use of expected shortfall (ES) is most appropriate when

• A)there is a small sample size used to estimate probability distributions.
• B)the VAR indicates there is no possibility of losses so another method must be used to determine market risk.
• C)the probability distribution is skewed to the right.
• D)a continuous probability distribution cannot be constructed.
• E)The probability distribution indicates there is a possibility of a "fat tail" loss.

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Definitions:

Inner-City Cultures

The traditions, behaviors, and activities characteristic of communities living in densely populated urban environments.

Observer Techniques

Methods used for collecting data by watching subjects in their natural environment without interference, often utilized in social sciences and user research.

Inspiration Phase

The initial stage in the creative process where an individual or group becomes stimulated to pursue a new idea or project.

Observation

The action of closely monitoring the behavior and activities of users/potential customers in their own environment.