The Value at Risk (VAR) Provides Information About the Potential

question 44

True/False

The Value at Risk (VAR) provides information about the potential size of the expected loss given a level of probability.

---

Definitions:

Investing Activity

Transactions involving the acquisition or disposal of long-term assets and investments not considered cash equivalents, reflected in a company's cash flows.

Loss

A financial situation in which total costs exceed total revenues, leading to a negative net income.

Indirect Method

A cash flow reporting technique that starts with net income and adjusts for cash-based transactions.

Operating Activities

Business activities related directly to the production, sale, and delivery of a company's products or services, often reflected in its cash flow.