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Which of the following statements is true if a probability distribution shows a 5%, $200,000 VaR and a CVaR of $500,000? There is a 5%
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Which of the following statements is true if a probability distribution shows a 5%, $200,000 VaR and a CVaR of $500,000?
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There is a 5% probability of a maximum loss of $500,000
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There is a 95% confidence that maximum loss on any given day will not exceed $200,000
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There is a 5% probability of a loss in earnings greater than $200,000
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The maximum loss that can occur is $700,000
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