10-52 Which of the Following Is a Problem Encountered While

question 71

Multiple Choice

10-52 Which of the following is a problem encountered while using more observations in the back simulation approach?

• A)Past observations become decreasingly relevant in predicting VAR in the future.
• B)Calculations become highly complex.
• C)Need to assume a symmetric (normal)distribution for all asset returns.
• D)Requirement for calculating the correlations of asset returns.
• E)Answers B and C only.

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