Risk and uncertainty (part 2) – ACCA (AFM) lectures
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The answer in back of the notes and in this lecture are different. 1,233,750 is subtracted with the avg returns. What is the reason that?
Isn’t VAR the workings where Std Dev * probability level and thereafter the Expected value – VAR gives the minimum return at the confidence level?
Hence for the 6 year period, shouldn’t we first look for the value at risk (VaR) for the 6 years which would be (VaR * root 6) ? You used the Std Dev * root 6
What was that drawing at 7:47? 馃榾