CFA Practice Question

There are 119 practice questions for this study session.

CFA Practice Question

A portfolio has a 10-day, 1% VaR limit of $5 million. If its cumulative monthly loss ever exceeds $8 million, it will be liquidated. The second constraint is known as a ______.
A. VaR limit
B. scenario limit
C. stop-loss limit
Explanation: The first one is a VaR limit.

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