- CFA Exams
- CFA Level I Exam
- Study Session 19. Portfolio Management (2)
- Reading 55. An Introduction to Risk Management
- Subject 4. Measuring and Modifying Risks
CFA Practice Question
A Value at Risk statistic has these components: ______.
II. the amount of potential maximum loss
III. the probability of that amount of loss
IV. the time frame
I. the amount of potential minimum loss
II. the amount of potential maximum loss
III. the probability of that amount of loss
IV. the time frame
A. I and III
B. II, III and IV
C. I, III and IV
Explanation: A VaR statistic has three components: a time period, a confidence level, and a loss amount (or loss percentage).
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