Author Question: Hedge Fund Company offers a mutual fund to investors. Fund managers are concerned about fund ... (Read 158 times)

sarasara · **on:** Jul 11, 2018

Hedge Fund Company offers a mutual fund to investors. Fund managers are concerned about fund volatility. They analyzed the fund to determine the worst loss likely to occur in a calendar quarter, assuming a 90 percent level of confidence.

The worst probable loss is known as the fund's
A) unrealized capital gain.
B) value at risk.
C) beta coefficient.
D) surrender value.

Question 2

Which of the following statements concerning the securitization of risk is (are) true? I. Securitization increases the capacity of the insurance industry. II. Securitization can be used to protect against catastrophic loss.

A) I only
B) II only
C) both I and II
D) neither I nor II