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.

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Definitions:

Personal Dosimeter

A device worn by individuals exposed to radiation, which measures the dose of radiation absorbed over time.

Radiation Exposure

The condition of being exposed to radiant energy or particles such as x-rays, gamma rays, or neutrons, which can have health implications.

Lead Barrier

A protective structure or shield made of lead, designed to prevent radiation from passing through.

Radiodermatitis

A skin condition caused by exposure to radiation, often seen as a side effect in patients undergoing radiation therapy for cancer.