In reference to capital requirements,value-at-risk analysis
A)refers to traditional bank loans and deposits
B)refers to a "risk-focused" approach to determining adequate bank capital
C)provides a level of confidence measure of the probability of the maximum loss that can occur during a period of time
D)b and c

Question

Quizplus · Accepted Answer

Value-at-risk analysis is a "risk-focused" approach to determining adequate bank capital as it provides a level of confidence measure of the probability of the maximum loss that can occur during a period of time. Therefore, option B and C are correct. Option A is incorrect as value-at-risk analysis is not restricted to traditional bank loans and deposits.

In Reference to Capital Requirements,value-At-Risk Analysis