The Value-At-Risk of a Portfolio Is

question 16

Multiple Choice

The value-at-risk of a portfolio is

• A)Always positive.
• B)Always negative.
• C)May be positive or negative.
• D)Always non-negative.

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Definitions:

Fair Value

The estimated market value of an asset or liability based on current prices in an open and competitive market.

Equity Securities

Financial instruments that represent ownership in a company, such as stocks, entitling holders to dividends and capital gains.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of a business.

Debt Securities

Financial instruments representing money borrowed that must be repaid, often with interest, including bonds, bills, and notes.