Which of the Following Risk Measures Is Not Translation Invariant $r$

question 10

Multiple Choice

Which of the following risk measures is not translation invariant (i.e. ,does not satisfy the property that if we add a risk-free asset to a portfolio with a return of $r$ ,the risk of the portfolio should come down by the extent of this addition) ?

• A)VaR.
• B)Expected shortfall.
• C)Kurtosis.
• D)Standard deviation.

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Definitions:

Behavior Therapy

A therapeutic approach that seeks to modify harmful behaviors through systematic techniques, including conditioning and reinforcement.

Replace Fear

Techniques or practices aimed at understanding and diminishing feelings of fear, often involving cognitive behavioral therapy or exposure therapy.

Exposure Therapies

A type of cognitive-behavioral therapy that involves the controlled exposure to the stimuli or situations that cause fear or distress to reduce their triggering effect.

Token Economy

A form of behavior modification that uses tokens or symbols as rewards for performing desired behaviors which can be exchanged for privileges or treats.