Financial analysts often investigate the value at risk (VAR)with simulation models.VAR is an indicator of:
A) how much to bid for a project
B) the expected amount of loss for a project
C) what is nearly the worst possible outcome for a project
D) the required amount of investment required for a project
E) None of these options

Question

Quizplus · Accepted Answer

VAR indicates the potential maximum loss in the worst-case scenario for a project, making option C the correct choice. It is not related to how much to bid for a project, the expected loss or required investment.

Financial Analysts Often Investigate the Value at Risk (VAR)with Simulation