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:

Partners' Capital Statement

A financial report that shows the changes in each partner's equity in a partnership over a period of time.

Income Ratio

A financial metric comparing different aspects of income, such as net profit to sales, to assess profitability or performance.

Capital Deficiency

A scenario in which a company's debts surpass its possessions, suggesting a risk of not being able to meet its financial obligations.

Matching

An accounting principle that involves recognizing expenses in the same period as the revenues they helped generate, to accurately reflect profits.