User Account

All Pages

Which of the following statements about var estimation

Assignment Help Finance Basics
Reference no: EM13568715

Which of the following statements about VAR estimation methods is wrong?

A. The delta-normal VAR method is more reliable for portfolios that implement portfolio insurance through dynamic hedging than for portfolios that implement portfolio insurance through the purchase of put options.

B. The full valuation VAR method based on historical data is more reliable for large portfolios that contain significant option-like investments than the delta-normal VAR method.

C. The delta-normal VAR method can understate the true VAR for stock portfolios when the distribution of the return of the stocks has high kurtosis.

D. Full valuation VAR methods based on historical data take into account nonlinear relationships between risk factors and security prices.

Reference no: EM13568715

Questions Cloud

Which of the following is most accurate with respect to : which of the following is most accurate with respect to delta-normal var?a. the delta-normal method provides accurate
What rate of return should a investor expect for a stock : what rate of return should a investor expect for a stock that has a beta of 0.8 when the market is expected to yield
Anita vasquez received 180000 from her mothers estate she : anita vasquez received 180000 from her mothers estate. she placed the funds into the hands of a broker who purchased
Consider company abc whose stock dividend per share next : consider company abc whose stock dividend per share next year is expected to be 30 and has expected dividend growth
Which of the following statements about var estimation : which of the following statements about var estimation methods is wrong?a. the delta-normal var method is more reliable
Specifically the entire forward curve is more volatile : natural gas prices exhibit seasonal volatility. specifically the entire forward curve is more volatile during the
Describe the key characteristics of a stakeholder and : pharmacare we care about your health is one of the worlds most successful pharmaceuticalcompanies enjoying a reputation
Aperture science has stocks with a required rate of return : aperture science has stocks with a required rate of return of 12. their return on equity is 14 and they have a
You are given the following information about the returns : you are given the following information about the returns of stock p and stock q variance of return of stock p 100.0.

Reviews

Write a Review

Finance Basics Questions & Answers

  Valuation techniques-mergers and acquisitions

What are some of the valuation techniques commonly used in Mergers and Acquisitions? Compare and contrast the valuation techniques common to Mergers and Acquisitions activities.

  Find the market value and cost of capital

The U Corporation and the L Corporation are identical in all aspects except that U Co. is all-equity financed while L Co. has $1,000 debt in 6% perpetual bonds outstanding.

  Management anticipates an increased working capital need of

chips home brew whiskey management forecasts that if the firm sells each bottle of snake-bite for 20 then the demand

  How much interest will you have earned after 10 years

You deposit 140 each month into a savings account that pays 8.5% compounded monthly. How much interest will you have earned after 10 years?

  Explain recommendation for a project based on npv

Explain Recommendation for a project based on NPV and What is the project's annual after tax cash flows for years

  Oral roberts dental supplies has annual sales of 5625000

oral roberts dental supplies has annual sales of 5625.000. 80 are on credit. the firm has 475000 in accounts

  At what debt ratio is the company wacc minimized

At what debt ratio is the company's WACC minimized? Round your answer to two decimal places.

  If firm pays 12 per year for its resource investment what

a manufacturing company pays accounts payable on the tenth day after purchase. the average collection period is 30 day

  Compute expected price of the stock

The dividend per share in one year is $2. In year two it is $4 a share. Then the dividend will grow at 5 percent per year after that. The expected rate of return is 12 percent.

  What is the break-even point in units for the company

Rocky Mount Metals Company manufactures an assortment of wood-burning stoves. The average selling price for the various units is $500. The associated variable cost is $350 per unit. Fixed costs for the firm average $180,000 annually.

  If the pure expectations theory is correct what does the

interest rates on 4-year treasury securities are currently 7 while 6-year treasury securities yield 7.5. if the pure

  Payout ratios also opportunity cost of capital

You may suppose any values for payout ratios also opportunity cost of capital. Compute stock price each share. Find out the value of PVGO.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd