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To Compute a 2-Year VaR, the Average Return Is Calculated

Question 57

Multiple Choice

To compute a 2-year VaR, the average return is calculated as


A) Twice the 1-year return
B) Being equal to the 1-year return
C) The 1-year return multiplied by (1 + the 1-year return)
D) (1 + one-year return) 2
E) Taking square root of the 1-year return

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