Value-At-Risk (VaR)is Most Closely Defined as

question 15

Multiple Choice

Value-at-Risk (VaR) is most closely defined as

• A)The probability of a specified level of negative return of a portfolio in the left tail of its profit-and-loss distribution.
• B)The dollar loss at which a pre-specified cumulative probability occurs in the left tail of the profit-and-loss distribution.
• C)The probability of a negative return below a specified threshold in the left tail of the distribution.
• D)The negative return rate for which a pre-specified probability lies in the left tail of the distribution.

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Definitions:

Knowledge

The understanding, awareness, or familiarity gained through experience or education by perceiving, discovering, or learning.

Science

The disciplined pursuit of knowledge, understanding, and truth through experimental observation, empirical evidence, and theoretical explanation.

Experience

Practical interaction with the world and the knowledge we gain through it. Today the term science tends to be limited to those questions that can and must be answered by reference to experience and extrapolations from experience.

Extrapolations

Predictions or inferences about unknown data made based on known or observed information.