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:

Peristalsis

A series of wave-like muscle contractions that moves food through the digestive tract.

Bowel Movement

The final act of digestion, where solid waste is expelled from the body through the anus.

Ileostomy Pouch

A medical device attached to the body to collect waste from the digestive tract through an opening made during an ileostomy surgery.

Blood in Stool

The presence of visible or microscopic blood in feces, which can be a sign of various conditions, from minor issues to serious diseases.