If a Portfolio Is Doubled in Size, Keeping Its Portfolio

question 7

Multiple Choice

If a portfolio is doubled in size, keeping its portfolio structure (holdings proportions) the same as before, the VaR will

• A) Remain the same.
• B) Double.
• C) Increase but be less than double its previous value.
• D) More than double.

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Definitions:

Focused Differentiation

A business strategy where a company offers unique products or services to a specific, narrow target market.

Focused Cost Leadership

A strategy that seeks the lowest costs of operations within a special market segment.

Strategy Management

The process of defining the strategy or direction of an organization, and making decisions on allocating resources to pursue this strategy.

Strategy Identification

The process of recognizing and defining the course of action or policies designed to achieve a major or overall goal.