Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The assumption that yield changes are normally distributed will result in an exact estimation of extreme outcomes.
B) The assumption that yield changes are normally distributed will generally result in overestimating extreme outcomes.
C) The assumption that yield changes are normally distributed will generally result in underestimating extreme outcomes.
D) Assumptions regarding the distribution of yields are not significant in market risk measurement models.