VaR is based on the.
A) Beta
B) Normal distribution
C) Efficient frontier
D) Security market line
E) Treynor ratio

Question

Quizplus · Accepted Answer

VaR is based on the normal distribution, which assumes the returns on a portfolio are normally distributed. It provides an estimate of the maximum potential loss of an investment or portfolio over a specific time period under normal market conditions, with a certain level of confidence.

VaR Is Based on The