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VaR is not enough to assess market risk of a portfolio. Stress testing is desirable because:

(i)    It helps in calibrating VaR module(ii)    It helps as an additional risk measure(iii)    It helps in assessing risk due to abnormal movement of market parameters(iv)    It is used as VaR measure is not accurate enough

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Question ajoutée par Vinod Jetley , Assistant General Manager , State Bank of India
Date de publication: 2015/01/24
Vinod Jetley
par Vinod Jetley , Assistant General Manager , State Bank of India

(iii)    It helps in assessing risk due to abnormal movement of market parameters

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
par VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option (iii) >>>>>>>>>>>>>   It helps in assessing risk due to abnormal movement of market parameters.

Wolf Klaas Kinsbergen
par Wolf Klaas Kinsbergen , Managing Director, Designer , ingenieursbureau KB International NV

If I understand what VaR is it would be3 (iii)

Mohammed Salim Allana
par Mohammed Salim Allana , Compliance and Assurance Manager , United Arab Bank

Agreed with Market Risk Champs! 

Saiful Islam Hiron
par Saiful Islam Hiron , Site HR Manager , Handicap International

Option III will be best answer.

Elke Woofter
par Elke Woofter , Project Assistant , American Technical Associates

Thank you for explaining this giving us the correct answer Mr. Vinod Jetley

for me Stress testing (sometimes called torture testing) means it is a form of deliberately intense or thorough testing used to determine the stability of a given system or entity.

Mukesh Varadhan
par Mukesh Varadhan , Administration Manager , M/s. Triton Health Care

Thanks of the invite. But I can't provide better answer than you. 

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