Illustrates an example of Value at Risk Used

Illustrates an example of Value at Risk Used?

E

Expert

Verified

An equity derivatives hedge fund calculates that it’s Value at Risk over one day at the 95 percent confidence level is $500,000. It is interpreted as one day out of 20 the fund expects to lose in excess of half a million dollars.

   Related Questions in Financial Management

©TutorsGlobe All rights reserved 2022-2023.