What Is the Correct Interpretation of a EUR 5,000,000

question 160

Multiple Choice

What is the correct interpretation of a EUR 5,000,000.00 one-week VaR figure with a 99% confidence level?

• A) A loss of at least EUR 5,000,000.00 can be expected in 99 out of the next 100 weeks.
• B) A loss of at most EUR 5,000,000.00 can be expected in 1 out of the next 100 weeks.
• C) A loss of at most EUR 5,000,000.00 can be expected in 1 out of the next 100 days.
• D) A loss of at least EUR 5,000,000.00 can be expected in 1 out of the next 100 weeks.

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Definitions:

Selling Price

The fee customers pay to acquire a product or service.

Special Order

A customer request for goods or services that are not part of a company's standard offerings, often requiring unique production or procurement efforts.

Variable Selling

denotes the costs that vary directly with the level of sales, such as commissions or shipping charges.

Administrative Costs

Expenses related to the general administration of a business, such as salaries of executive staff, office supplies, and utilities.