In the context of pure risk exposures, the equivalent notion to value at risk (VaR) is the:
A)Maximal Probable Actual Loss
B)Maximal Probable Expected Loss.
C)Maximal Probable Absolute Loss
D)Maximal Probable Annual Loss.
E)Maximal Probable Hypothetic Loss

Question

Quizplus · Accepted Answer

Maximal Probable Annual Loss is the equivalent notion to value at risk (VaR) in the context of pure risk exposures, as it estimates the maximum loss expected over a year.

In the Context of Pure Risk Exposures, the Equivalent Notion