Which of the following statements is true?
A)VaR corresponds to an average point of loss on the probability distribution.
B)VaR completely takes into account the patterns and the severity of the losses in the extreme tail.
C)VaR gives full information about the extent of possible losses, particularly when probability distributions are non-normal.
D)None of the listed options are correct.

Question

Quizplus · Accepted Answer

VaR (Value at Risk) does not correspond to an average point of loss, does not fully account for patterns and severity in the extreme tail, and does not give full information about possible losses, especially with non-normal distributions.

Which of the Following Statements Is True