CFA Practice Question

There are 119 practice questions for this study session.

CFA Practice Question

The 5% VaR of a portfolio is $2.2 million over a one-day period. If a stock option is added, the VaR will become $2.1 million. The IVaR in this case would be ______.

A. $2.1 million
B. $2.2 million
C. $0.1 million
Correct Answer: C

The IVaR is the difference between the before and after VaR: 2.2 - 2.1 = $0.1 million.

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