alleryStart learning →Which event triggered VaR's emergence in the late 1980s?
AThe 1997 Asian crisis
BThe 2008 Lehman collapse
CThe 2000 dot-com bust
DThe 1987 stock market crash
Answer & Solution
Correct answer: D. The 1987 stock market crash
The 1987 crash was so unlikely under standard models that it pushed quants toward VaR as a way to separate extreme events from daily moves.
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