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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.
To provide greater discretion to borrowers on terms and conditions, the guidelines on digital lending have kept _____ outside the scope of Digital lendi...
The rate applicable to an investment lasting for n years when all the returns are realized at the end is called:
Which of the following is correct with respect to measurement of sensitivity?
Which among these is not a type of funded loans?
A bank listing its Additional Tier 1 (AT1) bonds on an international financial services center (IFSC) is primarily doing so to:
Which of the following exposures/counterparties would not be considered to have a SICR as per RBI discussion paper on ECL model for banks:
I. S...
Which of the following is the correct sequence of steps in the communication process?
Which of the following is not an external factor leading to credit risk?
...Which Indian state is the GIFT City located in?
Ayush bought a futures contract at Rs 120. If, the initial margin is 40% and maintenance margin is 25%, at what price the margin call will be initiated ...
