Which of the Following Statements Is Incorrect

question 19

Multiple Choice

Which of the following statements is incorrect?

• A)The validity of a bank's estimated VAR is assessed with backtests in which the actual daily trading gains or losses are compared to the estimated VAR over a particular period.
• B)Some banks supplement the VAR estimate with stress tests.
• C)In general, the VAR model does not lend itself to determine capital requirements.
• D)All of the statements above are correct.

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Definitions:

Sexual Orientation

An inherent or immutable enduring emotional, romantic or sexual attraction to other people, which can be towards the same sex, opposite sex, or both.

Hormone Therapy

A medical treatment involving the administration of hormones to correct or modify certain medical conditions or to alleviate symptoms associated with specific diseases.

Opposite Sex

A term used to refer to the sex that is different from one's own, traditionally classified as male if one is female and female if one is male.

Organizing Principle

A core concept or ideology that forms the basis of a system, guiding its structure and operation.