Based on the survey conduct in 1999 by Moosa and Knight, which of the statements below is incorrect?

Question

Quizplus · Accepted Answer

The statement that a minority of users employ back testing and stress testing is incorrect. In fact, back testing and stress testing are commonly used practices among firms that employ value-at-risk (VaR) methodologies to ensure the accuracy and reliability of their risk assessments. These practices are integral to the risk management process, allowing firms to evaluate how well their VaR models predict potential losses and to assess the impact of extreme market conditions.

Based on the Survey Conduct in 1999 by Moosa and Knight