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:

Relative Priority

The ranking or importance of tasks or projects in comparison to each other based on criteria such as urgency or impact.

Utilization

The ratio of the time a resource is actually used to the time it is available for use, measured as a percentage, indicating the efficiency of the resource use.

Flow Time

The total time it takes for a product to move through a production process, from start to finish.

Work Centre

A specific location where work tasks are performed in a manufacturing or operations setting, often characterized by specific types of processes or equipment.