Which of the Following Is the Interpretation of a VAR

Multiple Choice

Which of the following is the interpretation of a VAR of $5 million for one year at 5 percent probability.

A) the probability is 5 percent that the firm will lose at least $5 million in one year
B) the probability is at least 5 percent that the firm will lose $5 million in one year
C) the probability is 5 percent that the firm will lose $5 million in one year
D) the probability is less than 5 percent that the firm will lose $5 million in one year
E) none of the above