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.
Which state has recently launched Griha Lakshmi Yojana for women?
Which Indian personality received the Goldman Environmental Prize in 2024?
In which city India’s quantum Computing Based Telecom Network Link is now Operational ?
Among the following Universities, which University won the highest number of gold medals in the Khelo India University Games, held between May 25 to Jun...
Which team won the Sultan Azlan Shah Trophy for the first time in its history in 2024?
What was the revised economic growth forecast for India in FY2024-25 as per the latest RBI report?
What is the primary focus of PM JANMAN?
Lake chilika lies to the south of which of the following river delta?
Who has been elected as the president of the Cycling Federation of India in the Annual General Body meeting?
Which Indian state passed a bill extending daily working hours for factory workers from 8 to 12 hours?