In Financial Simulation Models,the Value at Risk (VAR)is the 5^th

question 43

True/False

In financial simulation models,the value at risk (VAR)is the 5^th percentile of an output distribution,and it indicates nearly the worst possible outcome.

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Definitions:

Monetary Amount

The numerical value or sum of money expressed in a currency.

Nearest Cent

Rounding an amount to the closest cent, where amounts under half a cent are rounded down and half a cent or over are rounded up.

Salesperson Drives

Activities or motivations that propel a salesperson to achieve sales targets or perform sales activities.

Pounds Pork

A measurement of pork weight in pounds, commonly used in the sale and distribution of this type of meat.