Which one of the following statements is true concerning VaR?
A)VaR ignores time.
B)VaR only applies to time periods of one year.
C)VaR applies only to time periods equal to or greater than one year.
D)VaR values can be computed for monthly time periods.
E)VaR is accurate only for time periods less than one year.

Question

Quizplus · Accepted Answer

VaR values can be computed for any time period, including monthly time periods. VaR does not ignore time, but instead takes into account the time horizon of the investment or portfolio. VaR can be calculated for any time period, whether it is less than one year or greater than one year.

Which One of the Following Statements Is True Concerning VaR