Multiple choice general knowledge

The different Parameters of VaR are

  1. Time Horizon

  2. Variance - Covariance

  3. Currency

  4. Monte Carlo simulation

Reveal answer Fill a bubble to check yourself
A,C Correct answer
Explanation

The key parameters of VaR are: Time Horizon (the period over which risk is measured), Currency (the currency in which VaR is expressed), and Confidence Level (the probability level). Variance-Covariance and Monte Carlo simulation are METHODS for calculating VaR, not parameters themselves.