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For example, a mutual fund may have the following VAR characteristics: There is a 5 percent probability that the value of the portfolio may decline

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For example, a mutual fund may have the following VAR characteristics: There is a 5 percent probability that the value of the portfolio may decline by $50,000 on any single trading day. In this case, the worst probable loss is $50,000, the time period is one trading day, and the level of confidence is 5 percent. True False

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