Which of the Following Is True of the Historical Simulation

question 9

Multiple Choice

Which of the following is true of the historical simulation method for calculating VaR?

• A) It fits historical data on the behavior of variables to a normal distribution
• B) It fits historical data on the behavior of variables to a lognormal distribution
• C) It assumes that what will happen in the future is a random sample from what has happened in the past
• D) It uses Monte Carlo simulation to create random future scenarios

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Definitions:

Presbycusis

Loss of the ability to hear sounds of high frequency.

Sensory Deprivation

The intentional reduction or removal of stimuli from one or more of the senses, often used for relaxation, meditation, or in psychological experiments.

Presbycusis

Age-related hearing loss, gradually affecting the ability to perceive or understand sounds, especially in noisy environments.

High-Pitched Sounds

Sounds that have a high frequency, typically perceived as sharp or squeaky to the human ear.