Regarding the value-at-risk method, the same methods used to derive the maximum expected loss of one stock can be applied to derive the maximum expected loss of a stock portfolio for a given confidence level.

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Value-at-risk (VaR) methods used to estimate the maximum expected loss of a single stock can also be applied to a portfolio of stocks. By adjusting for the correlations between the stocks in the portfolio, VaR can provide an estimate of the maximum expected loss for the entire portfolio at a specific confidence level.

Regarding the Value-At-Risk Method, the Same Methods Used to Derive