The maximum one-day loss computed for the value-at-risk (VAR) method, does not depend on:

Related MCQs

• A French-based MNC has just established a subsidiary in Algeria. Shortly after the plant was built, the MNC determines that its exchange rate forecasts, which had previously indicated a slight appreciation in the Algerian dinar were probably false. Instead of a slight appreciation, the MNC now expects that the dinar will depreciate substantially due to political turmoil in Algeria. This new development would likely cause the MNC to __________ its estimate of the previously computed net present value.
• Two important practical differences between the monetary/non-monetary method and the current rate method of translation is found in their treatment of:
• Which of the following is not a payment method used for international trade?
• Which of the following is not a method of forecasting exchange rate volatility?
• Which of the following does not obey the mean-variance rule?
• Which of the following is a correct method of adjusting for inflation when calculating net present value?
• Following is (are) the method(s) for adjustment of risks
• How does the IMF meet its primary objective?
• What does financial leverage measure?
• If countries are highly influential upon each other, the correlations of their economic growth levels would likely be __________. A firm would benefit __________ by diversifying sales among these countries relative to another set of countries that were not influential upon each other.