The Value at Risk (VAR) Is Typically Defined as The

question 27

Multiple Choice

The value at risk (VAR) is typically defined as the:

• A) 5^th percentile of NPV distribution
• B) 10^th percentile of NPV distribution
• C) 50^th percentile of NPV distribution
• D) 90^th percentile of NPV distribution
• E) 95^th percentile of NPV distribution

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Definitions:

Effective

Capable of producing the intended or desired result.

Capital Contribution

Money, property, or other assets contributed to a company or partnership by its owners or partners to support its operations.

Limited Partner

An investor in a limited partnership who is not involved in daily business operations and whose liability is limited to the amount they invested in the partnership.

General Partners

Individuals who participate in the management of a partnership and have unlimited liability for its debts.