Which of the following can be defined as the worst-case scenario dollar value loss that could occur for a company exposed to a specific set of risks?
A)Fair-Risk value
B)Value at Risk
C)Loss-Threshold value
D)Volatility Arbitrage
E)Market at Risk

Question

Quizplus · Accepted Answer

Value at Risk (VaR) is a statistical measure used to assess the level of financial risk within a firm or investment portfolio over a specific time frame. This measure provides a worst-case scenario dollar value loss, which can occur with a certain level of confidence, due to a specific set of risks.

Which of the Following Can Be Defined as the Worst-Case