Which One of the Following Is the Primary Purpose of the Value-At-Risk

question 23

Multiple Choice

Which one of the following is the primary purpose of the Value-at-Risk computation?

• A) determine the 99 percent probability range given an abnormal distribution
• B) evaluate the risk-return tradeoff for a given mix of securities
• C) evaluate the probability of a significant loss
• D) determine the portfolio that maximizes the risk premium per unit of total risk
• E) determine the portfolio that maximizes the excess return per unit of systematic risk

---

Definitions:

Competitive Advantage

is the attribute that allows an organization to outperform its competitors, resulting from unique resources, capabilities, or strategies.

Rival Behaviour

Actions or strategies adopted by companies in competition with one another to gain an advantage or market share.

Competitive Effectiveness

The ability of an organization to implement strategies that secure a competitive edge and achieve desired outcomes efficiently.

Sustainable Competitive Advantage

The enduring ability of a company to remain more efficient, profitable, or innovative than its competitors.