Value at Risk (VaR) Is to Measure Price or Market

question 46

True/False

Value at risk (VaR) is to measure price or market risk of a portfolio of assets and attempt to determine the maximum loss they might sustain over a designated period of time.

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Definitions:

Dividend Rate

The amount of dividend paid per share divided by the price per share, often expressed as a percentage, indicating the returns shareholders receive for each dollar invested in the company's stock.

Date of Record

The cutoff date set by a company to determine which shareholders are eligible to receive a dividend or participate in a corporate action.

Dividend Payable

Liability showing amount of cash dividend owed.

Stock Split

Issuing of additional shares of stock to stockholders; total par or stated value remains the same.