The Measure of Risk That Focuses on the Worst Possible

question 24

Multiple Choice

The measure of risk that focuses on the worst possible outcome is called:

• A) expected rate of return.
• B) risk-free rate of return.
• C) standard deviation of return.
• D) value at risk.

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Definitions:

Obtained Value

The actual value achieved from a statistical test, used to compare against the critical value to determine statistical significance.

Critical Value

A threshold in a statistical test that delineates the boundary for rejecting or not rejecting the null hypothesis.

Null Hypothesis

In statistical testing, the default hypothesis stating that there is no significant difference or effect.

Obtained Value

The specific result or measurement derived from experimental or observational data, essential for evaluating hypotheses or models.