Which One of the Following Correctly States the VaR for a 3-Year

question 26

Multiple Choice

Which one of the following correctly states the VaR for a 3-year period with a 2.5 percent probability?

• A) Prob[R_p,T \(\le\) E(R_p) * 3 - 1.645 * \( \sigma\)_p \( \surd\)3]
• B) Prob[R_p,T \(\le\)E(R_p) * \( \surd\)3 - 1.645 * \(\sigma\)_p 3]
• C) Prob[R_p,T \(\le\) E(R_p) * \( \surd\)3 - 1.645 * \(\sigma\)_p \( \surd\)3]
• D) Prob[R_p,T \(\le\)E(R_p) * 3 - 1.960 * \(\sigma\)_p \( \surd\)3]
• E) Prob[R_p,T \(\le\) E(R_p) * \( \surd\)3 - 1.960 *\(\sigma\)_p 3]

---

Definitions:

Ethical Imperatives

Principles or mandates of ethical conduct that dictate the morally right actions or behaviors.

Ideals

Concepts or standards of perfection or excellence that are pursued as goals or benchmarks.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.

Ethics

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong conduct, often addressing issues of morality.