- This topic has 3 replies, 2 voices, and was last updated 8 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for September & December 2024 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Value at risk- DEC 2014
For the confidence level of 90% how o u get the stdeviation of 1.82?
How would u do yr method here, can u explain me, the marking scheme luks abrupt?
You work back using the normal distribution tables to see how many std deviations give an answer of 0.4. (For 90% confidence we need 90 – 50 = 40% below the mean. 40% = 0.4)
I explain this all in detail in my lecture on VAR.
If its 0.4 then under the SD Table, the closest value is 0.4015 then 1.29 but in the MS its 1.282
It certainly is not the closest at all !!
1.28 is closer (and the examiner accepts it to two decimal places). He has approximated linearly between 1.28 and 1.29.