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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?

A. Conditional VaR
B. Marginal VaR
C. Relative VaR

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I used your notes and passed ... highly recommended!
Lauren

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.