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.
Correct Answer:

Verified
Correct Answer:
Verified
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