Question
Value at Risk (VaR) is a widely used risk management
tool. A limitation of the VaR approach to measuring risk is that it fails to specify:Solution
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.
Who among the following lives in flat-2 of 4th floor?
Who among the following person lives on the bottommost floor?
Who worked with Yahoo?
How many students appear for the exam along with D and A?
Which among the following combination is correct?
Which of the following combination is true?
Who among the following lives at the topmost floor?Â
Statements:
O ≤ W ≥ B > A ≤ U; X< U ≤ L
Conclusions:
I) B > X
II) W ≤ L
Who shops in home décor department from Big Basket?
Which of the following combination is correct?