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A risk manager at an investment firm is making a presentation about VaR to a group of newly hired junior analysts. The manager explains the use of VaR in controlling and monitoring risk and discusses the benefits and limitations of VaR. Which of the following statements would be correct for the manager to make?
A
VaR is a reliable and easily performed method to measure the riskiness of illiquid assets.
B
VaR systems can generate accurate market risk estimates but at the expense of making "rogue trading" easier.
C
VaR measures can help identify the different sources of an increase in total portfolio risk.
D
VaR systems can monitor the risk levels of investments at regular intervals but not in real time.