Each of the following statements about VAR is true except:

1. VAR is the loss that would be exceeded with a given probability over a specific time period.
2. Establishing a VAR involves several decisions, such as the probability and time period over which the VAR will be measured, and the technique to be used.
3. VAR will be larger when it is measured at 5% probability than when it is measured at 1% probability (in absolute values).
4. VAR will be larger when it is measured over a month than when it is measured over a day.