Why is Value at Risk important, explain reasons
Why is Value at Risk important? Specified with reasons?
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An option to using a parameterized model for the underlying is to simulate straight by historical data, bypassing the normal distribution assumption in total. VaR is a very helpful concept in practice for the given reasons:
Grecian Tile Manufacturing of Athens, Georgia borrows $1,500,000 at LIBOR and a lending margin of 1.25 percent per annum on six-month rollover basis through London bank. If six-month LIBOR is 4 ½ percent in the first six-month interval and 5 3/8 percent over the second six-mo
Why might it be easier for an investor wishing to diversify his portfolio internationally to purchase depository receipts instead of the actual shares of the company?A depository receipt can be purchased on the investor's domestic exchange. It
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Explain risk in various forms.
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In which measurement semi-variance mathematical definition of risk is used?
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