Which of the Following Is True of the 99

question 15

Multiple Choice

Which of the following is true of the 99.9% value at risk?

• A) There is 1 chance in 10 that the loss will be greater than the value of risk
• B) There is 1 chance in 100 that the loss will be greater than the value of risk
• C) There is 1 chance in 1000 that the loss will be greater than the value of risk
• D) None of the above

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Definitions:

Market Returns

The financial gain or loss that an investment or economic activity brings over time, often related to the supply and demand in a marketplace.

Mandatory Benefit

An employee benefit, such as social security or workers' compensation, that is required by law.

Canada Pension Plan

A government-run retirement pension plan in Canada that provides contributors and their families with partial replacement of earnings in the case of retirement, disability, or death.

Employment Insurance

A government program that provides temporary financial assistance to unemployed workers who meet certain eligibility criteria.