For Situations in Which Probability Distributions Exhibit Fat Tail Losses

question 38

True/False

For situations in which probability distributions exhibit fat tail losses, expected shortfall (ES) may look relatively small, but value at risk (VAR) may be very large.

---

Definitions:

-tomy

Refers to the process of cutting or making an incision, as used in medical terms such as "appendectomy," which is the surgical removal of the appendix.

Organ of Corti

A structure in the cochlea of the inner ear that produces nerve impulses in response to sound vibrations.

Cochlea

A spiral-shaped, fluid-filled inner ear structure that is essential for hearing.

Endaural

Pertaining to the area or procedures within the ear canal, often used in the context of surgical interventions.