The N-Day Market Value at Risk (VAR) Equals Daily Earning

question 30

Multiple Choice

The N-day market value at risk (VAR) equals daily earning at risk multiplied by the square root of N if we assume that yield shocks are:

• A)dependent, that daily volatility is approximately constant and that the FI is 'locked in' to holding the asset in question for N number of days
• B)independent, that daily volatility is approximately constant and that the FI is 'locked in' to holding the asset in question for N number of days
• C)dependent, that daily volatility is approximately constant and that the FI is 'locked in' to holding the asset in question for N minus one number of days
• D)independent, that daily volatility is approximately constant and that the FI is 'locked in' to holding the asset in question for N minus one number of days

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Definitions:

Sexual Maladjustment

Difficulty or inability to adjust to or manage one's sexual behavior or desires, which can lead to distress or dysfunction.

Increased Dedication

A heightened level of commitment or devotion towards a particular activity, cause, or goal.

Alcohol Consumption

The act of drinking beverages containing ethanol, which can range from moderate drinking to alcohol abuse, affecting health, behavior, and social relationships.

Income And Expenses

Refers to the money received by an individual or organization (income), and the cost incurred for goods or services (expenses).