Multiple Choice
Which one of the following is the primary purpose of the Value-at-Risk computation?
A) determine the 99 percent probability range given an abnormal distribution
B) evaluate the risk-return tradeoff for a given mix of securities
C) evaluate the probability of a significant loss
D) determine the portfolio that maximizes the risk premium per unit of total risk
E) determine the portfolio that maximizes the excess return per unit of systematic risk
Correct Answer:
Verified
Correct Answer:
Verified
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