Which One of the Following Correctly States the VaR for a 3-Year

question 77

Multiple Choice

Which one of the following correctly states the VaR for a 3-year period with a 2.5% probability?

• A)Prob[R_p,T ≤ E(R_p)× 3 − 1.645 × σ_p √3]
• B)Prob[R_p,T ≤ E(R_p)× √3 − 1.645 × σ_p 3]
• C)Prob[R_p,T ≤ E(R_p)× √3 − 1.645 × σ_p √3]
• D)Prob[R_p,T ≤ E(R_p)× 3 − 1.960 × σ_p √3]
• E)Prob[R_p,T ≤ E(R_p)× √3 − 1.960 × σ_p 3]

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Definitions:

Self-Affirmation

A cognitive process that involves affirming one's values, strengths, or qualities to maintain self-integrity and deal with threats.

Perceive Ourselves

Refers to the process of thinking about, reflecting on, and understanding one's own identity, characteristics, and behaviors.

Positive Views

The perspective or outlook that focuses on the most favorable aspects of a situation or the optimistic side of things.

Negative Views

Pessimistic perceptions or attitudes towards something or someone, often without considering positive aspects.