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Value at Risk (VaR) estimates maximum loss over time period at confidence level (e.g., 95% confident loss won't exceed $X in one day).

चरण-दर-चरण मार्गदर्शिका

  1. 1Input returns history or parameters
  2. 2Calculate percentile loss
  3. 3Report VaR at chosen confidence level

हल किए गए उदाहरण

इनपुट
$1M portfolio, 95% confidence
परिणाम
95% VaR ≈ $50k/day (5% chance of larger loss)
Risk measure used by banks

सामान्य गलतियां जिनसे बचना है

  • Assuming VaR captures all downside
  • Not updating with new volatility regime

अक्सर पूछे जाने वाले प्रश्न

Doesn't VaR underestimate tail risk?

Yes, doesn't show loss magnitude beyond confidence level; use CVaR (expected shortfall) too.

सेटिंग्स