What Is the Method of Testing How Often a VaR

question 20

Multiple Choice

What is the method of testing how often a VaR with a certain confidence level was exceeded in the past called?

• A) Stress testing
• B) Back testing
• C) EWMA
• D) The model-building approach

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Definitions:

Research

The systematic gathering of information in a scientific and objective manner to help answer questions; one of the primary duties of social media professionals.

Challenging

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Demanding

Requiring or calling for a significant amount of effort, skill, or attention.

Data Insights

The understanding and actionable conclusions derived from analyzing data, often used to inform decisions or strategies.