Consider a $900 Portfolio with Three Assets, Each Held in Equal

question 19

Multiple Choice

Consider a $900 portfolio with three assets, each held in equal value. The VaR of the portfolio is such that an increase in $1 of any of the asset holdings results in a $0.05 increase in VaR. The VaR of this portfolio is approximately equal to:

• A) $5
• B) $15
• C) $45
• D) $135

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Definitions:

Company's Objectives

are the specific, quantifiable targets set by a business aiming to guide its operations towards achieving its strategic goals.

Courses of Action

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Controlling

A phase in the management process that consists of monitoring the operating results of implemented plans and comparing the actual results with the expected results.

Choosing Goals

The process of identifying desired outcomes or objectives to guide decision-making and actions.