Historical Simulation as a Method of Computing VaR Has the Following

question 2

Multiple Choice

Historical simulation as a method of computing VaR has the following major benefit in comparison to the delta-normal method:

• A)It is a faster approach.
• B)It uses past returns to forecast future returns.
• C)It requires the same number of parameters as the delta-normal method.
• D)It does not assume normality of the P&L return distribution.

Understand the purposes and proper use of bulleted and numbered lists in business writing.

Recognize the utility of informative headings and subheadings in guiding readers through a document.

Comprehend the revision process and its significance in improving the first drafts.

Grasp methods to improve the readability and clarity of messages.

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Definitions:

Fiat Money

Money without intrinsic value that is used as money by government decree

Money

The set of assets in an economy that people regularly use to buy goods and services from other people.

Wealth

The accumulation of valuable economic resources and assets, including property, investments, and cash, that an individual or entity possesses.

Roundabout Trade

Trade involving multiple countries where goods are exported to one country before being re-exported to the final destination.