You Have Computed the Expected Return Using VaR with a 2.5

question 22

Multiple Choice

You have computed the expected return using VaR with a 2.5 percent probability for a one-year period of time.How would this expected return be expressed on a normal distribution curve?

• A) lower tail starting at the point that is 2.5 standard deviations below the mean
• B) lower tail of a 95 percent probability range
• C) the point that corresponds to 2.5 standard deviations below the mean
• D) the point that represents the lower end of the 90 percent probability range
• E) the negative range that lies within 2.5 standard deviations of the mean

---

Definitions:

Frequency Distribution

A statistical tool that illustrates how often each value in a set of data occurs.

Test Grades

Assessments of a student's performance or understanding in educational settings, usually quantified as scores or letters.

Statistical Terms

Phrases and expressions used to describe, summarize, and analyze quantitative data.

Group Means

The average values obtained from groups of data points which are often used in statistical analysis to represent the central trend of each group.