Which one of the following is NOT one of the reasons why the Value at Risk (VaR) method can be problematic in predicting or assessing risk exposures?

Question 16 options:

A)

VaR method is based on assumptions and simplifications that do not exist in the real world but are necessary to fit the real world into a workable model.

B)

VaR models allow market condition to change over time in the sample, and therefore, VaR predictions can be hard to be interpreted.

C)

Legislative or regulative changes that have implemented in the years after the data range could have been ignored in the model, and therefore, lead to incorrect conclusions or inferences.

D)

Corn has been farmed and used much more widely than twenty years ago, and therefore, past data would have been a poor predictor of future price movements.

E)

None of the above