Monte Carlo Is Widely-Used Approach for Computing VaR

question 18

Multiple Choice

Monte Carlo is widely-used approach for computing VaR.Relative to other methods which of the following is a benefit of using this approach?

• A)It is fully flexible in parameterizing the forward-looking distribution.
• B)It always requires very few parameters.
• C)It always uses normality.
• D)It is the fastest approach to computing VaR.

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