Question: Standard deviation and value at risk (VaR) are statistical models that are widely used to measure the risk of a portfolio or an asset. Discuss

Standard deviation and value at risk (VaR) are statistical models that are widely used to measure the risk of a portfolio or an asset.

Discuss how the use of such statistical models could result in the actual losses being far greater than that predicted under the models.

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Standard deviation and Value at Risk VaR are valuable tools for risk management but they have limitations that can lead to underestimating actual risk ... View full answer

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