You Have Computed the Expected Return Using VaR with a 2.5

question 47

Multiple Choice

You have computed the expected return using VaR with a 2.5% probability for a 1-year period. How would this expected return be expressed on a normal distribution curve?

• A)lower tail starting at the point that is 2.5 standard deviations below the mean
• B)lower tail of a 95% probability range
• C)the point that corresponds to 2.5 standard deviations below the mean
• D)the point that represents the lower end of the 90% probability range
• E)the negative range that lies within 2.5 standard deviations of the mean

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Definitions:

Widely Understood Rules

Norms, guidelines, or principles that are generally accepted and recognized by a large group of people.

Situated Identity

A conception held by a person in a situation that indicates who he or she is in relation to the other people involved in that situation.

Front Region

A term in sociolinguistics and social psychology referring to the setting or stage where individuals perform certain roles under social observation.

Ingratiation

The deliberate use of deception to increase a target person's liking for us in hopes of gaining tangible benefits that the target person controls. Techniques such as flattery, expressing agreement with the target person's attitudes, and exaggerating one's own admirable qualities may be used.