When a firm analyzes its situation and determines the maximum likely losses that it can incur in that situation,it has determined it's:
A)value at risk.
B)risk quotient.
C)loss limit.
D)transaction exposure.

Question

Quizplus · Accepted Answer

Value at Risk (VaR) is a statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over a specific time frame. This measure is often used to estimate the maximum potential loss that could occur with a given confidence level due to market movements.

When a Firm Analyzes Its Situation and Determines the Maximum