Value at Risk Provides an Estimate of the Worst Possible

question 57

True/False

Value at Risk provides an estimate of the worst possible loss a firm can incur with a given probability.

---

Definitions:

Mental Disorders

Psychological conditions characterized by significant disturbances in thought, emotion, or behavior.

General Paresis

An irreversible medical disorder whose symptoms include psychological abnormalities, such as delusions of grandeur; caused by syphilis.

Emil Kraepelin

A German psychiatrist known for his contributions to the classification of mental disorders and is often considered the founder of modern scientific psychiatry.

Syphilis

A sexually transmitted infection caused by the bacterium Treponema pallidum, characterized by distinct stages and symptoms, including sores, rashes, and potentially serious late-stage complications.