Multiple Choice
Which of the following is true of the historical simulation method for calculating VaR?
A) It fits historical data on the behavior of variables to a normal distribution
B) It fits historical data on the behavior of variables to a lognormal distribution
C) It assumes that what will happen in the future is a random sample from what has happened in the past
D) It uses Monte Carlo simulation to create random future scenarios
Correct Answer:
Verified
Correct Answer:
Verified
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