Which One of the Following Statements Is True Concerning VaR

question 64

Multiple Choice

Which one of the following statements is true concerning VaR?

• A)VaR ignores time.
• B)VaR only applies to time periods of one year.
• C)VaR applies only to time periods equal to or greater than one year.
• D)VaR values can be computed for monthly time periods.
• E)VaR is accurate only for time periods less than one year.

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product.

Nondiscriminating Natural Monopoly

A market condition where a single firm can supply the entire market's demand for a good or service at a lower cost than any competitor, without price discrimination.

Marginal Cost

The cost of producing one additional unit of a product or service, a critical concept in economic decision-making.

Average Total Cost

The total cost of production (fixed costs plus variable costs) divided by the quantity of output produced, representing the per unit cost.