Practitioners often use a ________% VaR, meaning that ________% of returns will exceed the VaR, and ________% will be worse.
A) 25; 75; 25
B) 75; 25; 75
C) 1; 99; 1
D) 95; 5; 95
E) 80; 80; 20

Question

Quizplus · Accepted Answer

VaR (Value at Risk) is a statistical measure used to assess the risk of investment portfolios. A 1% VaR means that there is a 1% chance that returns will exceed the VaR threshold, indicating that 99% of the time returns will be better, and 1% of the time they will be worse.

Practitioners Often Use a ________% VaR, Meaning That ________% of Returns

Practitioners Often Use a % VaR, Meaning That % of Returns