VaR gives full information about the extent of possible losses, particularly when probability distributions are non-normal.

Question

Quizplus · Accepted Answer

VaR does not provide full information about the extent of possible losses, especially under non-normal distributions, as it only estimates the maximum loss at a specific confidence level without detailing the shape of the tail or potential losses beyond this point.

VaR Gives Full Information About the Extent of Possible Losses