Question
With high confidence (95%), we can then calculate the VaR as 1.65 standard deviations below the mean. This approach has been criticized following the financial
With high confidence (95%), we can then calculate the VaR as 1.65 standard deviations below the mean. This approach has been criticized following the financial crisis of 2008. Can you think of reasons why?
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Ans The reasons why this has been criticized are as follows 1 It was potentiall...
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Economics
Authors: R. Glenn Hubbard
6th edition
978-0134797731, 134797736, 978-0134106243
