If Every Position in a Portfolio Is Doubled in Size

question 29

Multiple Choice

If every position in a portfolio is doubled in size, the risk contribution of the original portion of the portfolio, as measured by VaR, will

• A) Remain the same as before.
• B) Double.
• C) Halve.
• D) More than double.

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Definitions:

Low-Context Cultures

Cultures that depend on explicit messages conveyed through the spoken or written word.

High-Context Cultures

Cultures in which meaning is conveyed through body language, nonverbal cues, and the circumstances in which the communication is taking place.

Edward T. Hall

An anthropologist known for his work in the areas of body language, proxemics, and cultural communication theories.

Complicating Factor

An element that introduces difficulty, making a problem harder to solve or a situation more challenging to navigate.