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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.
Two pipes A and B can fill a tank in 15 hours and 20 hours, respectively. If both pipes are opened together and then pipe A is closed after 5 hours, how...
A deck of 52 cards is used. Two king cards and one spade are removed from the deck. Then, two cards are drawn randomly one after the other without repla...
An investor deposits ₹50,000 in a bank that offers a simple interest rate of 8% per annum. How much interest will the investor earn after 3 years, and...
A vessel is completely filled with milk. If 48% of the milk is replaced with water then only 130 ml of milk will be left in the vessel. What is the tota...
3, 14, 69, 340, 1825, ?.
Find the greatest 3-digit number which when divided by 11 or 14 leaves a remainder of 3.
I). p2 + 16p + 55 = 0
II). q2 + 9q + 20 = 0
55-litres of paint is added to a mixture of paint and oil in the ratio 3:5. The ratio of paint and oil in the resulting mixture is 4:3. Find the total v...
A mixture contains 40 liters of milk and 10 liters of water. How much milk should be added to make the ratio of milk to water 5:1?