How many of the following statements regarding the risk measures (standard deviations, value at risk (VAR), expected shortfall (ES), and spectral and distorted risk measures) are NOT correct?
- Standard deviation is stable because it depends upon assumptions concerning the loss distribution.
- VAR is coherent because it violates the monotonicity condition.
- Expected shortfall is easy to interpret.
- Spectral and distorted risk measures are intuitive and easily understood.
A. 3.
B. 2.
C. 1.
D. 4.
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