CFA Practice Question

There are 119 practice questions for this study session.

CFA Practice Question

A 5% VaR implies a ______.

A. 5% potential minimum loss
B. 5% chance of a downward move
C. 2.5% chance of a downward move and a 2.5% chance of an upward move
Correct Answer: B

For investors, risk is about the odds of losing money, and VaR is based on that common-sense fact.

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