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.

Analyze the importance of efficiency, predictability, and long-term planning in management practices.

Understand the significance of human relations and people orientation in supervision and management.

Analyze the role of supervision in supporting employees' personal needs while being productive.

Interpret the need for sustainability and external monitoring in modern management practices.

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Definitions:

Normally Distributed

A statistical term describing data that follows a bell curve pattern, where most observations fall around the mean, and probabilities for values decrease as they move away from the mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.

Mean Age

The mean age of a specific group or population, determined by adding together the ages of all members and then dividing by the total number of members.

Heights of Men

The distribution of vertical measurements of adult males in a specific population or group.