VaR models are most successful in assessing potential risk when the assets are non-traded.

Name: VaR models are most successful in assessing potential risk when the assets are non-traded.
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Question

Quizplus · Accepted Answer

VaR models are most commonly used for traded assets, such as stocks or bonds, where there is a market price readily available. Non-traded assets, such as real estate or private equity, can be more difficult to value and therefore may require different risk assessment methods.

VaR Models Are Most Successful in Assessing Potential Risk When