What is Value at Risk (VaR) primarily used for in risk

Value at Risk VaR is used to assess the potential loss in portfolio value over a defined period for a given confidence interval.

management?

A Predicting future returns Correct Answer Incorrect Answer

B Assessing potential loss in portfolio value Correct Answer Incorrect Answer

C Determining interest rates Correct Answer Incorrect Answer

D Managing currency risk Correct Answer Incorrect Answer

E Calculating tax liabilities Correct Answer Incorrect Answer

Solution

Value at Risk (VaR) is used to assess the potential loss in portfolio value over a defined period for a given confidence interval.

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