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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