A Disadvantage of the Historic or Back Simulation Model for Quantifying

question 35

Multiple Choice

A disadvantage of the historic or back simulation model for quantifying market risk includes

• A)calculation of a standard deviation of returns is not required.
• B)calculation of the correlation between asset returns is not required.
• C)estimates of past returns used in the model may not be relevant to the current market returns.
• D)it accounts for non-standard return distributions.
• E)None of the above.

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Definitions:

Dry Gaseous HBr

Hydrogen bromide gas that is free from water, often used in organic synthesis as a reagent.

Step-by-step Mechanism

A detailed description of every stage in a chemical reaction, explaining the process by which reactants convert into products.

Major Product

The product of a chemical reaction that is formed in the greatest amount, often favored by thermodynamic or kinetic control.

Oxymercuration-demercuration

A two-step organic reaction process used to convert alkenes into alcohols, involving the addition of mercury (II) acetate followed by reduction.