Identify the Three Approaches to Calculating Value at Risk (VaR)

question 67

Essay

Identify the three approaches to calculating value at risk (VaR) and identify one advantage and one disadvantage of each approach.

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Definitions:

Connection

A relationship or link between individuals, objects, or systems that enables communication or interaction.

Code of Ethics

A set of principles and guidelines designed to help professionals conduct business honestly and with integrity.

Business

An enterprise or company participating in market, industry, or specific professional operations.

Business Activity

Engagements or actions undertaken by individuals or companies to produce, sell, or distribute goods or services in pursuit of profits.