Which of the Following Statements Is True

question 9

Multiple Choice

Which of the following statements is true?

• A)VaR corresponds to a specific point of loss on the probability distribution.It does not provide information about the potential size of the loss that exceeds it.
• B)VaR completely ignores the patterns and the severity of the losses in the extreme tail.
• C)VaR gives only partial information about the extent of possible losses, particularly when probability distributions are non-normal.
• D)All of the listed options are correct.

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Definitions:

Local Spending

Expenditures by individuals, businesses, or government within a specific geographic area, contributing to the local economy.

Gains From Trade

The benefits that individuals, companies, or countries experience as a result of engaging in voluntary trade.

Efficiency

The optimal use of resources to achieve the desired output with minimum waste or expense.

Community

A group of people living in the same place or having a particular characteristic in common.