Which One of the Following Correctly States the VaR for a 3-Year

question 77

Multiple Choice

Which one of the following correctly states the VaR for a 3-year period with a 2.5% probability?

• A)Prob[R_p,T ≤ E(R_p)× 3 − 1.645 × σ_p √3]
• B)Prob[R_p,T ≤ E(R_p)× √3 − 1.645 × σ_p 3]
• C)Prob[R_p,T ≤ E(R_p)× √3 − 1.645 × σ_p √3]
• D)Prob[R_p,T ≤ E(R_p)× 3 − 1.960 × σ_p √3]
• E)Prob[R_p,T ≤ E(R_p)× √3 − 1.960 × σ_p 3]

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Definitions:

Proletariat

The class of wage-earners, especially in a capitalist society, who do not own the means of production and whose only sustainable means of livelihood is to sell their labor.

Marx

Refers to Karl Marx, a 19th-century philosopher, economist, and revolutionary socialist whose works have significantly influenced socialist and communist movements worldwide.

Social Stratification

The hierarchical arrangement and classification of individuals or groups in society based on wealth, income, social status, occupation, or other criteria.

Marx

Refers to Karl Marx, a 19th-century philosopher, economist, and revolutionary, best known for his theories about capitalism and communism.