Which of the Following Is Not a Valid Statement About

question 13

Multiple Choice

Which of the following is not a valid statement about VaR?

• A) It is not a general measure of risk but a measure of extreme risk only.
• B) It is an ingredient in computing capital requirements.
• C) It is a single metric comparing return performance across portfolios.
• D) It is a one-sided measure of risk.

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Definitions:

Overstaffed

A situation where there are more employees than necessary within an organization or team, often leading to inefficiency and increased costs.

Understaffed

The situation of having fewer staff members than needed to operate effectively, often leading to increased workload and stress for existing employees.

Overstaffing

The condition of having more employees than necessary, which can lead to reduced efficiency and increased costs.

Divide the Group

A strategy or process of separating a larger group into smaller groups or teams, often to facilitate focus, manageability, or diversity of thought.