Which of the following measures of risk best highlights the potential loss from extreme negative returns?

Question

Quizplus · Accepted Answer

Value at Risk (VaR) measures the potential loss at a specific level of confidence in extreme market events. It provides an estimate of the maximum loss that could occur within a specific time horizon with a given level of probability. Therefore, VaR is considered the best measure of risk for highlighting potential losses from extreme negative returns.

Which of the Following Measures of Risk Best Highlights the Potential