You Have Computed the Expected Return Using VaR with a 2.5

question 22

Multiple Choice

You have computed the expected return using VaR with a 2.5 percent probability for a one-year period of time.How would this expected return be expressed on a normal distribution curve?

• A) lower tail starting at the point that is 2.5 standard deviations below the mean
• B) lower tail of a 95 percent probability range
• C) the point that corresponds to 2.5 standard deviations below the mean
• D) the point that represents the lower end of the 90 percent probability range
• E) the negative range that lies within 2.5 standard deviations of the mean

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Definitions:

Wood Pallets

Wood pallets are flat transport structures made of wood that support goods in a stable fashion while being lifted by a forklift, pallet jack, front loader, or other jacking device.

Raw and Semifinished

Materials or products that have undergone partial processing but are not yet complete products ready for sale to the end consumer.

Standardization

The process of making products, processes, or services uniform to ensure consistency and quality.