Which One of the Following Correctly States the VaR for a 3-Year

question 14

Multiple Choice

Which one of the following correctly states the VaR for a 3-year period with a 2.5 percent probability?

• A) Prob[R_p,T ≤ E(R_p) × 3 - 1.645 × σ_p √3]
• B) Prob[R_p,T ≤ E(R_p) × √3 - 1.645 × σ_p 3]
• C) Prob[R_p,T ≤ E(R_p) × √3 - 1.645 × σ_p √3]
• D) Prob[R_p,T ≤ E(R_p) × 3 - 1.960 × σ_p √3]
• E) Prob[R_p,T ≤ E(R_p) × √3 - 1.960 × σ_p 3]

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Definitions:

Racial Labels

Terms or categories used to identify and classify individuals based on physical characteristics and lineage, often embedded with social meanings and stereotypes.

Ethnic Labels

Terms or categories used to identify individuals or groups based on shared cultural, national, tribal, racial, or religious heritage.

Negotiation Process

A method of discussion aimed at reaching an agreement, involving two or more parties with differing needs and desires.

Social Construction

The concept that perceptions of reality are shaped by the collective agreement and understanding of individuals within a culture or society.