#### Learning Outcome Statements

My Note:

1. Value at Risk *a. explain the use of value at risk (VaR) in measuring portfolio risk;*
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b. compare the parametric (variance-covariance), historical simulation, and Monte Carlo simulation methods for estimating VaR;*
c. estimate and interpret VaR under the parametric, historical simulation, and Monte Carlo simulation methods;
d. describe advantages and limitations of VaR;
e. describe extensions of VaR; | |

2. Other Key Risk Measures *f. describe sensitivity risk measures and scenario risk measures and compare these measures to VaR;*
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g. demonstrate how equity, fixed-income, and options exposure measures may be used in measuring and managing market risk and volatility risk;*
h. describe the use of sensitivity risk measures and scenario risk measures;
i. describe advantages and limitations of sensitivity risk measures and scenario risk measures; | |

3. Applications of Risk Measures *j. describe risk measures used by banks, asset managers, pension funds, and insurers;*
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4. Using Constraints in Market Risk Management *k. explain constraints used in managing market risks, including risk budgeting, position limits, scenario limits, and stop-loss limits;*
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l. explain how risk measures may be used in capital allocation decisions.* | |