Which of the Following Is a Problem Encountered While Using

question 67

Multiple Choice

Which of the following is a problem encountered while using more observations in the back simulation approach?

• A)Past observations become decreasingly relevant in predicting VAR in the future.
• B)Calculations become highly complex.
• C)Need to assume a symmetric (normal)distribution for all asset returns.
• D)Requirement for calculating the correlations of asset returns.

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Definitions:

Promissory Notes

Written promises to pay a specified sum of money to a named party on demand or at a determined future date.

Carrying Amount

The book value of assets and liabilities reported on the balance sheet, calculated as the original cost less any depreciation, amortization, or impairment costs.

Interest-Bearing

Referring to a financial instrument or account that generates interest income over time.

Promissory Note

A financial instrument that represents a written promise by one party to pay a specified sum of money to another party, either on demand or at a predetermined future date.