Question: How and why do we use Standard Deviation (variance) as a measure of risk in banking and finance? What is Value at Risk (VaR), why

How and why do we use Standard Deviation (variance) as a measure of risk in banking and finance? What is Value at Risk (VaR), why do we use VaR in banking? Explain the relationship between VaR and the bank capital? Explain meaningfully. Answer the question only!

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