To accurately determine whether the new risk measure W exhibits the property of translation invariance, which of the following tests should the Chief Risk Officer (CRO) employ?

Exam-Like

When cash is added to a portfolio, the value of W for that portfolio should decrease by the amount of cash that is added.

50.5%

When W is used to measure the risk of two portfolios A and B, then W(A) + W(B) should be less than or equal to W(A+B).

17.2%

When W is used to measure the risk of two portfolios A and B, and if portfolio A always produces a worse outcome than portfolio B, then W(A) should always be higher than w(B).

13.1%

When W is used to measure the risk of portfolio A, and if all exposures in portfolio A are increased by a constant factor, then W(A) should increase proportionally by that factor.

19.2%

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To accurately determine whether the new risk measure W exhibits the property of translation invariance, which of the following tests should the Chief Risk Officer (CRO) employ?