VaR as a Risk Measure Has the Following Deficiency

question 5

Multiple Choice

VaR as a risk measure has the following deficiency:

• A) It does not consider the shape of losses in the left tail of the P&L distribution.
• B) It does not consider the shape of losses outside the left tail of the P&L distribution.
• C) Neither of the above.
• D) Both of the above.

---

Definitions:

Customer Retention

The ability of a company to keep its customers over a period of time, reducing customer defections.

High-pressure Sales Tactics

Aggressive selling strategies that push the customer to make a quick decision, often making them feel uncomfortable or pressured.

Professional Buyers

Individuals or organizations specialized in purchasing goods or services for their company, focusing on obtaining the best terms and quality.

Sales Calls

Phone calls or in-person visits made by salespeople to pitch products or services to potential customers.