alleryStart learning →The VaR risk measure defines risk as loss on what basis?
ABook value of a changing portfolio
BAccrual accounting income
CMark-to-market loss, fixed portfolio
DCash flow shortfall over a year
Answer & Solution
Correct answer: C. Mark-to-market loss, fixed portfolio
VaR as a risk measure uses mark-to-market loss of a static portfolio over a fixed time horizon.
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