- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 41. Measuring and Managing Market Risk
- Subject 1. Value at Risk
CFA Practice Question
It can be difficult to use the parametric method when the investment portfolio contains ______.
B. forwards and futures
C. options
A. fixed-income securities
B. forwards and futures
C. options
Correct Answer: C
When options are not exercised, the distribution of returns will be truncated, leading to non-normal distributions.
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