Which of the Following Is the Best Definition for the Concept

question 57

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:

Traits

Enduring characteristics or qualities that define an individual's personality.

Social-cognitive Interaction

The process by which individual cognitive processes are influenced by social context and interactions.

Nature-nurture Theory

A theoretical framework that debates whether human behavior and traits are predetermined by genetics (nature) or influenced by environment and upbringing (nurture).

Heritability

A measure in genetics that indicates how much of the variation in a particular trait within a population can be attributed to genetic differences among individuals in that population.