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A risk manager is comparing the use of parametric and non-parametric approaches for calculating VaR and is concerned about some of the characteristics present in the loss data. Which of the following conditions would make non-parametric approaches the favored method to use?
A
Scarcity of high magnitude loss event
B
Skewness in the distribution
C
Unusually high volatility during the data period
D
Unusually low volatility during the data period