Is EVT the ideal solution for distributions that have extreme events not reflected in historical data?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Value at Risk The New Benchmark for Managing Financial Risk

ISBN: 978-0071464956

3rd edition

Authors: Philippe Jorion

See More Books

Question Posted: May 03, 2016 02:12 AM

See More Questions

I thought the Internet would be an ideal way to distribute our products. We've had a lot of success with our direct sales, but now we can reach a much larger audience. The baskets we make and sell...
Do you think you will ever have an extreme job? Are you sure? Explain. Why do you think the number of extreme jobs has risen? Do you think organizations should encourage extreme jobs, discourage...
A. Interpret the coefficient of determination (R 2 ) estimated for the nursing cost function. B. Describe the economic and statistical significance of each estimated coefficient in the nursing cost...
Integer sort. Write a linear-time filter that reads from standard input a sequence of integers that are between 0 and 99 and prints to standard output the same integers in sorted order. For example,...
Mooney Company completed construction of an office building for $2,400,000 on December 31, 2010. The company estimated that the building would have a residual value of $0 and a useful life of 40...
Xian plc enters into a service contract to manage a customers information technology data centre for five years. The contract is renewable for subsequent one-year periods. The average customer term...
Consider a group or an organization you belong to that would benefit from examining its culture. Choose one of the guidelines from the Leading Culture Change sections and describe how you would use...
Brown and Stetham, plumbers, successfully bid $30,000 for the plumbing work on a new luxury home. Total direct labor cost on the job was $9,500, other direct costs were $2,500, and overhead is...
4 You work in the finance department for Cash, Bucks & Dough, Co. and are preparing the yearly Statement of Cash Flows for the company. You will use the following information below to complete 5 6...
Do males have higher literacy rates than females, on average, in Islamic countries? The following table shows the percent of men and women who were literate in 24 largely Muslim nations at the time...
What are three alternative approaches to measuring VAR and their benefits?
List factors that result in a decrease in VAR assuming a normal distribution.
When a ceiling fan rotating with an angular speed of 3.66 rad/s is turned off, a frictional torque of 0.125 N # m slows it to a stop in 31.8 s. What is the moment of inertia of the fan?
St. Cecilia's Health System's current culture may be defined by a blend of historical ideals and problems. Given its history of primarily caring for women and children, it is likely to place a...
For this assignment, imagine we are the supervisor of case managers who come to us for support and guidance. You have noticed a theme of questions that are frequently asked, which mostly surround...
Audio Partners needs to invest in the next level of technology in order to be competitive. The company is exploring the purchase of a new piece of equipment that will cost $1,500,000, at an expected...
Choose a real company of their choosing and will focus on ways to help increase the company's digital consumer engagements. For example, how can the company better drive increased revenue, sales,...
Four morally and ethically relevant principles have been examined regarding scarcity and include: Treating people with consistency through the use of a lottery or first-come first-served basis...
What is the present value of $1.00 to be received three time periods from now if the time value of money is 0.10 per period? In Table A at the end of the book, the 0.10 column and the line opposite n...
What kind of financial pressures can an LBO cause?
In July of 2012, Taylor purchased 2,000 shares of XYZ common stock for $75,000. He then sold 1,000 shares of XYZ in July of 2013 for $39 per share. The remaining 1,000 shares were finally sold for...
Nowadays it is very important to reduce one's carbon "footprint" (how much carbon we produce in our daily lifestyles). Minimizing the use of fossil fuels and instead resorting to renewable sources of...
Sergeant Jess Frugal has the problem of running out of money near the end of each month (he gets paid once a month). Near his army base there is a payday lender company, called Predatory Lenders,...
What is the present value of $500 invested each year for 10 years at a rate of 5%?
GL1203 - Based on Problem 12-6A Golden Company LO P2, P3 Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are...
A project with an initial cost of $27,950 is expected to generate cash flows of $6,800, $8,900, $9,200, $8,100, and $7,600 over each of the next five years, respectively. What is the project's...

Is EVT the ideal solution for distributions that have extreme events not reflected in historical data?

Question:

Step by Step Answer:

Hence for the final analysis we can say that NO EV...View the full answer

Value at Risk The New Benchmark for Managing Financial Risk

Students also viewed these Finance questions