When Assessing Tail Risk by Looking at the 5% Worst-Case

question 43

Multiple Choice

When assessing tail risk by looking at the 5% worst-case scenario,the VaR is the ________.

• A)most realistic as it is the most complete measure of risk
• B)most pessimistic as it is the most complete measure of risk
• C)most optimistic as it is the most complete measure of risk
• D)most optimistic as it takes the highest return (smallest loss) of all the cases
• E)none of the above

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Definitions:

Norms of The Powerful

The standards and behaviors promoted and maintained by those in dominant positions in society, often reflecting and perpetuating their interests.

Social Structure

The organized pattern of social relationships and social institutions that together compose society.

Female Arrest Rates

Refers to the frequency or number of arrests made among women within a specific time frame or geographical area.

Labor Market

The supply of available workers in relation to available work, influenced by factors like employment rates, wage levels, and economic conditions.