Which of the Following Is the Best Definition for the Concept

question 269

Multiple Choice

Which of the following is the best definition for the concept of value at risk (VaR) ?

• A) The return earned in an average year over a multi-year period.
• B) The hypothesis is that actual capital markets are efficient.
• C) The average squared deviation between the actual return and the average return.
• D) Statistical measure of maximum loss used by banks and other financial institutions to manage risk exposures.
• E) The positive square root of the variance.

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Definitions:

Just Noticeable Difference (jnd)

The minimum difference in stimulation that a person can detect 50% of the time.

Physical Energy

The capacity to do work, manifesting in forms such as kinetic, potential, thermal, electrical, chemical, and nuclear energy.

Müller's Doctrine

A theory in physiology proposing that the nature of a perception is determined by the neural pathway that sensory input activates, not by the specific stimulus itself.

Specific Nerve Energies

Specific nerve energies is a theory suggesting that different sensory nerves convey specific types of sensory information to the brain, leading to distinct sensory experiences.