Which Approach to Measuring Market Risk, in Effect, Amounts to Simulating

question 75

Multiple Choice

Which approach to measuring market risk, in effect, amounts to simulating or creating artificial trading days and FX rate changes?

• A)Back simulation approach.
• B)Variance/covariance approach.
• C)Monte Carlo simulation approach.
• D)RiskMetrics Model.
• E)All of the options.

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Definitions:

Business Practices

Customary, habitual ways of operation that are considered standard within a particular business or industry.

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The behavior of individuals or groups who claim to have moral standards or beliefs to which their actions do not conform.

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