If a Portfolio Is Doubled in Size,keeping Its Portfolio Structure

question 33

Multiple Choice

If a portfolio is doubled in size,keeping its portfolio structure (holdings proportions) the same as before,the VaR will

• A)Remain the same.
• B)Double.
• C)Increase but be less than double its previous value.
• D)More than double.

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Definitions:

Phosphodiesterase

Enzyme that splits phosphodiester bonds—that is, that breaks down cyclic AMP to AMP.

Phosphodiesterase

An enzyme that plays a role in cell signal transduction by breaking down phosphodiester bonds.

Cyclic AMP

A secondary messenger used for intracellular signal transduction, such as transferring the effects of hormones like glucagon and adrenaline.

GTP

Guanosine triphosphate, a molecule that provides energy for many biochemical cellular processes by hydrolysis of its high-energy phosphate bonds.