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Which of the following is true of the historical simulation method for calculating VaR? A ) It fits historical data on the behavior of variables
Which of the following is true of the historical simulation method for calculating VaR?
A It fits historical data on the behavior of variables to a normal distribution
B It fits historical data on the behavior of variables to a lognormal distribution
C It assumes that what will happen in the future is a random sample from what has happened in the past
D It uses Monte Carlo simulation to create random future scenarios
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