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.

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Definitions:

Reference Checking

The process of contacting previous employers, colleagues, teachers, or other individuals to verify the background, capabilities, and qualifications of a job applicant.

Employee Selection Process

A systematic approach used by employers to review applications, assess candidates, and hire the most suitable individual for a job.