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

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Definitions:

Westernized cities

Urban areas significantly influenced by Western culture in aspects such as lifestyle, architecture, economy, and governance.

Arabic villages

Small, often rural and traditional communities found within Arab regions, characterized by distinct cultural, architectural, and social structures.

Developmental period

A specific time frame in an individual's life during which significant growth or change occurs, often categorized by stages in physical, emotional, or cognitive development.

Adolescence

A transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.