What type of event is characterized by a very low probability of occurrence?

"Grey Swan" event "Black Swan" event "White Swan" event "Red Swan" event

What can investors use to estimate the worst-case loss in their portfolio if a Black Swan event were to occur?

Beta Sharpe Ratio Value at Risk (VaR) Alpha

According to normal distribution theory, what percentage of data lies within two standard deviations?

68% 95% 99.7% 50%

What does Value at Risk (VaR) help investors understand about their portfolio?

The expected return in a bull market The potential maximum gain in a given period The worst-case portfolio loss in a given timeframe The risk-free rate of return

What is the term for the average of the last 5% of observations in a sorted dataset when calculating Value at Risk?

Expected Loss Conditional Value at Risk (CVaR) Potential Loss Tail Value at Risk (TVaR)

What type of economic event occurred in the United States during the 1970s?

Hyperinflation Deflation Stagflation Recession

What was the name given to the day in October 1987 when the Dow Jones Industrial Average experienced its largest single-day percentage drop?

Black Friday Red Monday Black Monday Crash Tuesday

What new type of financial professional emerged in response to the market crash of 1987?

Day Traders Quants Hedge Fund Managers Venture Capitalists

What type of report did Dennis Weatherstone, CEO of JP Morgan, commission to assess the firm's overall risk?

Daily Profit and Loss 4:15 PM Report Risk Exposure Analysis Stress Test Report

What company was spun off from JP Morgan to provide risk management services and data to other financial institutions?

Bloomberg Reuters The RiskMetrics Group FactSet