Which One of the Following Value-At-Risk Measures Would Be Most

question 12

Multiple Choice

Which one of the following Value-at-Risk measures would be most appropriate for a portfolio designed for a very risk-adverse investor?

• A)Prob (R_p ≤ − .20)= 100%
• B)Prob (R_p ≤ − .15)= 50%
• C)Prob (R_p ≤ − .10)= 25%
• D)Prob (R_p ≤ − .10)= 10%
• E)Prob (R_p ≤ − .05)= 1%

---

Definitions:

Federal Law

encompasses laws passed by the national government of the United States.

Artisan's Lien

A legal claim granted to artisans or mechanics against the property they have serviced or improved, ensuring payment for their work.

Real Property

Land and anything permanently attached to it, such as buildings and fixtures, legally recognized as immovable.

Consensual Lien

A security interest that is agreed upon by the debtor and creditor to secure payment or performance of an obligation.