Which of the following is a limitation of the Value at Risk (VaR) approach, a widely used risk management tool, to measuring risk?
A limitation of the value at risk (VaR) approach to measuring risk is that it fails to specify the maximum loss that could occur. VAR statistic has three components - a relatively high level of confidence (typically either 95% or 99%), a time period (a day, a month or a year) and an estimate of investment loss (expressed either in absolute or percentage terms). However, at a 99% confidence level what VAR really means is that in 1% of cases (that would be 2-3 trading days in a year with daily VAR) the loss is expected to be greater than the VAR amount. Value At Risk does not say anything about the size of losses within this 1% of trading days and by no means does it say anything about the maximum possible loss.
If each of the letters of the word 'STADIUM' are re-arranged in the English alphabetical order, then the position of which letter will remain unchanged?
There is a group of 6 people: A, B, C, D, E and F (not necessarily in the same order). D is taller than A and E. F is taller than B and C. E is taller t...
Arrange the following in a logical and meaningful order.
I. Kamet
II. Kanchenjunga
III. Nanda Devi
IV. Saltoro Kangri
Six people A, B, C, D, E and F sit around a circular table and they are facing the centre, not necessarily in the same order. B sits opposite E and A si...
If 21st February 2005 was a Sunday, then what would be the day of the week on 21st February 2007?
Consider the symbols '*, $, #, @, %' and the various meanings associated with them asfollows:
'A * B' means ' A is not greater than B'
'A ...
Which two signs should be interchanged to make the given equation correct?
17 × 3 ÷ 6 − 2 + 7 = 55
‘A # B’ means ‘A is the father of B’.
‘A % B’ means ‘A is the mother of B’.
‘A @ B’ means ‘A is the sister of B’.<...
Select the option that is related to the third term in the same way as the second term is related to the first term and the sixth term is related to th...
Select the number from among the given options that can replace the question mark (?) in
203, 199, 208, 192, 217, 181, ?
...