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    Question

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

    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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