Value-At-Risk (VaR) Is Most Closely Defined as

question 27

Multiple Choice

Value-at-Risk (VaR) is most closely defined as

• A) The probability of a specified level of negative return of a portfolio in the left tail of its profit-and-loss distribution.
• B) The dollar loss at which a pre-specified cumulative probability occurs in the left tail of the profit-and-loss distribution.
• C) The probability of a negative return below a specified threshold in the left tail of the distribution.
• D) The negative return rate for which a pre-specified probability lies in the left tail of the distribution.

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Definitions:

Secretary of State

Refers to a senior official in the federal government of the United States who heads the Department of State, primarily responsible for foreign affairs and diplomacy.

LLLPs

Limited Liability Limited Partnerships, a form of business organization that offers both general and limited partners limited liability protection.

General Partner

A partner in a partnership who has unlimited liability and is responsible for managing the business.

Fiduciaries

Individuals or entities that hold a legal or ethical relationship of trust, requiring them to act in the best interest of the beneficiary.