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Financial Risk Manager Part 2

Financial Risk Manager Part 2

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  1. Inquiry A risk management expert is reviewing a set of quantile-quantile (Q-Q) plots that illustrate the empirical distribution of a portfolio's profit and loss percentiles against the percentiles from various theoretical reference distributions. The objective is to gain insights into the properties and characteristics of the actual distribution of the portfolio's profits and losses by using these Q-Q plots. Which of the following statements is correct regarding quantile-quantile diagrams?

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