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Sir plz tell me how to read the table in the topic of value at risk…
For eg 5%probability level standard deviation at 20% fund value is 1000You subtract the probability from 50%. (So for 5% you get 45%)
Then you convert to a decimal (so 45% is 0.45)
Then you look up in the table to nearest answer to your decimal and read what the row/column headings are for that figure. (So for 0.4500 it is half way between 1.64 and 1.65 – so 1.645)I do suggest you watch my free lecture on this:
https://opentuition.com/acca/p4/acca-p4-value-at-risk/
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