Reference no: EM132853785

Answer the following:

If there is a significant loss in the tail of the distribution on the loss side (i.e., a thick tail), which measure of risk is more appropriate?

a. VaR

b. ES

Which of the following is NOT an advantage of continuous discounting?

a. The math is sometimes easier

b. A similar consecutive up and down change in the price returns to the starting price.

c. It is generally easier to explain to others

If the mean percent return per day is near zero, then an average of the daily squared returns is a close estimate of the variance.

a. True

b. False