One Benefit of the Historic or Back Simulation Approach Is

question 47

True/False

One benefit of the historic or back simulation approach is that it does not need calculation of standard deviations and correlations (or assume normal distributions for asset returns) to calculate the portfolio risk figures.

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Definitions:

Qualitative Differences

Variations that relate to the quality or kind of attributes, rather than quantity, often used in research to describe distinct characteristics or experiences.

Quantitative Differences

Differences that can be measured and expressed numerically, indicating a variation in quantity or magnitude between entities or groups.

Polygenetic Inheritance

A form of inheritance where traits are governed by more than one gene, leading to a continuous range of possible phenotypes.

Phenotypic Expression

The observable physical or biochemical characteristics of an organism, as determined by both genetic makeup and environmental influences.