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    Financial Institutions Management Study Set 2
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    Exam 9: Market Risk
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    RiskMetrics Weights More Recent Observations More Highly Than Past Observations
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RiskMetrics Weights More Recent Observations More Highly Than Past Observations

Question 52

Question 52

True/False

RiskMetrics weights more recent observations more highly than past observations, which allows more recent news to be more heavily reflected in the calculation of the standard deviation.

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