Which One of the Following Is the Best Interpretation of This

question 45

Multiple Choice

Which one of the following is the best interpretation of this VaR statistic: Prob (R_p ≤ − .15) = 37%?

• A)If your portfolio declines by 15% or more, then that decline is expected to be followed by a 37% increase in value.
• B)Your portfolio is expected to lose at least 15%, but not more than 37%, in any given year.
• C)There is a 37% chance that your portfolio will decline in value by at least 15% over the next year.
• D)Sometime in the future, your portfolio is expected to lose 15% or more in a single year, but have an overall average rate of return of 37%.
• E)There is a 37% chance that your portfolio will lose at least 15% of its value over the next 10 years.

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Definitions:

New Products

This term refers to items that have been introduced into the market recently, offering novel features or capabilities not previously available.

Crowdfunding

The method of financing a project or business by collecting minor contributions from a vast audience, usually through online platforms.

Traditional Sources

pertain to the established, time-honored means or origins from which information, materials, or practices are obtained.

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An online crowdfunding platform that allows individuals to fundraise for creative projects, inventions, and products.