The value at risk (VAR) is typically defined as the:
A)5th percentile of NPV distribution
B)10th percentile of NPV distribution
C)90th percentile of NPV distribution
D)95th percentile of NPV distribution

Question

Quizplus · Accepted Answer

Value at Risk (VAR) is commonly defined as the 5th percentile of the Net Present Value (NPV) distribution, indicating the maximum expected loss over a given time period with a certain confidence level, typically 95%.

The Value at Risk (VAR) Is Typically Defined as The