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:

Cognitive Mediational

Relating to the theory that cognitive processes mediate the relationship between stimuli and emotional responses.

Schachter and Singer

Psychologists who proposed the two-factor theory of emotion, suggesting that emotion comes from a combination of physiological arousal and cognitive labeling of that arousal.

Nucleus Accumbens

A brain structure that plays a central role in the reward circuit, associated with pleasure, reinforcement learning, and addiction.

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions such as fear and pleasure, and drives like those for food and sex.