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NEW QUESTION: 1
Known limitations of VaR methodology include the fact that changes in market may not tend to normal distribution (specifically, that very large movements are more likely than predicated by the normal distribution assumption); BECAUSE:
A. All of these
B. Correlation between market movement can vary (especially during periods of stress in the market)
C. The changes in present values are not perfectly linearly related to changes market rates.
D. The use of one day horizon does not fully capture the market risk of positions that cannot be liquidated in one day.
Answer: A
NEW QUESTION: 2
Answer:
Explanation:
Explanation
NEW QUESTION: 3
A. Option B
B. Option D
C. Option C
D. Option A
Answer: B,D
