Which of the Following Measures of Risk Best Highlights the Potential

question 69

Multiple Choice

Which of the following measures of risk best highlights the potential loss from extreme negative returns?

• A) Standard deviation
• B) Variance
• C) Upper partial standard deviation
• D) Value at risk (VaR)
• E) None of the options are correct.

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Definitions:

Continental Shield

A large geological area composed of Precambrian crystalline rocks that are often millions of years old, making up the stable parts of continents.

Sediment-Filled Basin

A low area on the Earth's surface where sediments have accumulated over time, often due to the sinking or subsidence of the crust.

Continental Hot Spot

A volcanic region thought to be fed by underlying mantle that is anomalously hot compared with the surrounding mantle, situated in the interior of a continental plate.

Rifts

Linear zones where the Earth's crust and lithosphere are being pulled apart, often associated with volcanic activity and the formation of new oceanic crust.