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Basic Question 10 of 19
Which VaR measure is the MOST useful in evaluating the potential effect of a trade before the trade is done?
B. Marginal VaR
C. Relative VaR
A. Conditional VaR
B. Marginal VaR
C. Relative VaR
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I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
explain the use of value at risk (VaR) in measuring portfolio risk;
compare the parametric (variance -covariance), historical simulation, and Monte Carlo simulation methods for estimating VaR;
estimate and interpret VaR under the parametric, historical simulation, and Monte Carlo simulation methods;
describe advantages and limitations of VaR;
describe extensions of VaR;
CFA® 2025 Level II Curriculum, Volume 5, Module 41.