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NEW QUESTION: 1
Conditional VaR refers to:
A. expected average losses conditional on the VaR estimates not being exceeded
B. expected average losses above a given VaR estimate
C. value at risk when certain conditions are satisfied
D. the value at risk estimate for non-normal distributions
Answer: B
Explanation:
Explanation
Conditional VaR is the expected average losses above a given percentile, or a given VaR estimate at the given level of confidence. For example, if we know what the 99% VaR is, we still do not know what we can expect our losses to be if this VaR loss estimate were to be exceeded. Conditional VaR provides the answer to this question by providing an estimate of the average or expected losses beyond 99% mark. Therefore Choice 'c' is the correct answer and the other choices are mostly non-sensical.

NEW QUESTION: 2
The problems at Bankgesellschaft Berlin can best be characterized as failures related to:
A. Credit Risk
B. Both B and C
C. Market Risk
D. Operational Risk
Answer: B

Responses