What Does It Mean If We Are Being Told That

question 17

Multiple Choice

What does it mean if we are being told that the 5% VaR of a portfolio is -4.75%?

• A) The average return of the portfolio is -4.75%
• B) The average loss of the portfolio is 4.75%
• C) There is only a 5% probability of a loss greater than 4.75%
• D) The maximum loss of the portfolio is 4.75% with probability 95%
• E) c and d

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Definitions:

Dominance Hierarchies

Social ranking systems within animal groups, where individuals are ranked in terms of access to resources.

Primatologists

Scientists who study primates, including monkeys, apes, and humans, focusing on their behavior, biology, and evolution, and their interactions with environments and societies.

Nonhuman Primates

Primates that are not human beings, including monkeys, apes, and lemurs, often studied to gain insights into human evolution and behavior.

Teams

Groups of individuals working together towards a common goal, characterized by shared responsibilities and collaborative effort.