The value at risk approach

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Reference no: EM131020089

The Value at Risk approach:

a. chooses the valuable large outcome over small in a portfolio .

b. determines the highest expected value of terminal wealth in a portfolio.

c. only looks at the likelihood of bad outcomes.

d. involves a trade-off of expected return and a bad outcome in a portfolio.

Discuss whether the following statement is true or false: A multi-index model will predict returns better than a single-index model

Reference no: EM131020089

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