Which One of the Following Is the Primary Purpose of the Value-At-Risk

question 90

Multiple Choice

Which one of the following is the primary purpose of the Value-at-Risk computation?

• A)determine the 99% probability range given an abnormal distribution
• B)evaluate the risk-return tradeoff for a given mix of securities
• C)evaluate the probability of a significant loss
• D)determine the portfolio that maximizes the risk premium per unit of total risk
• E)determine the portfolio that maximizes the excess return per unit of systematic risk

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