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NEW QUESTION: 1
For identical mean and variance, which of the following distribution assumptions will provide a higher estimate of VaR at a high level of confidence?
A. A distribution with kurtosis = 3
B. A distribution with kurtosis = 8
C. A distribution with kurtosis = 2
D. A distribution with kurtosis = 0
A fat tailed distribution has more weight in the tails, and therefore at a high level of confidence the VaR estimate will be higher for a distribution with heavier tails. At relatively lower levels of confidence however, the situation is reversed as the heavier tailed distribution will have a VaR estimate lower than a thinner tailed distribution.
A higher level of kurtosis implies a 'peaked' distribution with fatter tails. Among the given choices, a distribution with kurtosis equal to 8 will have the heaviest tails, and therefore a higher VaR estimate. Choice 'a' is therefore the correct answer. Also refer to the tutorial about VaR and fat tails.
NEW QUESTION: 2
Define the acronym RBAC
A. Role BasedAccess Center
B. Role Based Access Control
C. Rule Based Access Control
D. Rule BasedAccess Center