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:

Tax Liability

The total amount of tax owed to the government by an individual, corporation, or other entity in a given tax period.

Taxable Income

The amount of income that is used to calculate an individual or a corporation's income tax due, after all deductions and exemptions.

Federal Unemployment Compensation

Financial assistance provided by the federal government to individuals who have lost their jobs.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the tax rate that applies to each additional dollar of taxable income.