Which of the following are related to VaR analysis?
I. beta
II. standard deviation
III. expected return
IV. time
A)I and III only
B)II and IV only
C)I, III, and IV only
D)II, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

VaR analysis involves measuring the potential loss in value of a financial asset or portfolio over a given time horizon with a certain level of confidence. Standard deviation and time are directly related to VaR analysis, as they are used to calculate the volatility and length of the time horizon, respectively. Expected return is also indirectly related to VaR analysis, as it provides context for interpreting the potential loss. Beta, on the other hand, is a measure of a stock's volatility in relation to the overall market and is not directly related to VaR analysis.

Which of the Following Are Related to VaR Analysis