________ is a risk measure that indicates vulnerability to extreme negative returns.
A) Value at risk
B) Lower partial standard deviation
C) Expected shortfall
D) None of the options
E) All of the options are correct.

Question

Quizplus · Accepted Answer

Value at Risk (VaR), Lower Partial Standard Deviation, and Expected Shortfall are all risk measures that indicate vulnerability to extreme negative returns. VaR estimates the maximum potential loss over a given time frame at a certain confidence level. Lower Partial Standard Deviation focuses on the variability of negative returns, ignoring positive returns. Expected Shortfall (also known as Conditional VaR) estimates the expected loss in the worst-case scenario beyond the VaR threshold.

________ Is a Risk Measure That Indicates Vulnerability to Extreme