Solved

Consider a VAR of $100 000 for a 95% Confidence

Question 50

True/False

Consider a VAR of $100 000 for a 95% confidence level.A problem with this information is that while we know that we will lose more than the VAR amount on 5 days out of every 100, we do not know the maximum amount we can lose.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q45: Which of the following statements is true?<br>A)Daily

Q46: Assume the market value of a position

Q47: One benefit of the historic or back

Q48: Which of the following statements is true?<br>A)Daily

Q49: Reasons why market risk measurement is important

Q51: Assume an FI holds three different positions.The

Q52: RiskMetrics weights more recent observations more highly

Q53: Specific risk charge is a charge reflecting

Q54: Which of the following are problems associated

Q55: Monte Carlo simulations address the problems imposed