- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 42. Measuring and Managing Market Risk
- Subject 4. Applications of Risk Measures
CFA Practice Question
Which VaR would market participants that use a high degree of leverage choose?
B. 1% VaR
C. 5% VaR
A. 0.1% VaR
B. 1% VaR
C. 5% VaR
Correct Answer: A
They tend to focus on potential loss measures with a high confidence level.
User Contributed Comments 1
| User | Comment |
|---|---|
| davidt87 | because they don't have much breathing space to be losing value |