The Difference Between Standard Deviation and Value at Risk Is

question 88

Multiple Choice

The difference between standard deviation and value at risk is:

• A) nothing, they are two names for the same thing.
• B) value at risk is a more common measure in financial circles than is standard deviation.
• C) standard deviation reflects the spread of possible outcomes where value at risk focuses on the value of the worst outcome.
• D) value at risk is expected value times the standard deviation.

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Definitions:

Quaternary Ammonium

Ionic compounds containing a central nitrogen atom bonded to four organic groups and one additional anion, known for their disinfectant properties.

Primary Amine

A compound with one (primary) amino group attached to the main carbon chain.

Imine

Organic compounds characterized by a nitrogen atom double-bonded to a carbon atom, with the carbon also attached to a hydrogen or another carbon group.

Amide

A functional group characterized by a carbonyl group (C=O) linked to a nitrogen atom.