Introduction to Value at Risk (VAR) - Part 1 of 2

Topics:
Insurance
Tags:
Finance,
Investment,
Investopedia,
Value At Risk
Source:
Investopedia

FREE Registration is required

Overview: This article elaborates information on Risk Management. VAR or sometimes VaR) has been called the "new science" of risk management, but you do not need to be a scientist to use VAR. The most popular and traditional measure of risk is volatility. The main problem with volatility, however, is that it does not care about the direction of an investment's movement: a stock can be volatile because it suddenly jumps higher. Value at Risk (VAR) calculates the maximum loss expected (or worst case scenario) on an investment, over a given time period and given a specified degree of confidence.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: HTML | Date: Sep 2004 | Pages: 5

People who downloaded this item also downloaded

White Paper Decision Analysis and Risk Management: Two Sides of the Same Coin
White Paper Value at Risk: A Methodology for Information Security Risk Assessment
White Paper Investment and Risk Management
White Paper Risk Management in Asset Management
White Paper Introduction to Value at Risk (VAR) - Part 2 of 2

Top results from Insurance

White Paper How Should Unemployment Benefits Respond to the Business Cycle?
White Paper Consolidation and Efficiency in the Financial Sector: A Review of the International Evidence
White Paper Market Discipline in Banking Reconsidered: The Roles of Deposit Insurance Reform, Funding Manager Decisions and Bond Market Liquidity
White Paper Deposit Insurance, Bank Incentives, and the Design of Regulatory Policy
White Paper Getting a Handle on Disability Claims

» View all Insurance listings

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement

Returning users: Log In Here!

Already registered on BNET, TechRepublic, or ZDNet? Simply log in.

Free Membership: Sign Up Now!

Sign up for a free membership today and get instant and unlimited access to one of the largest databases of white papers, webcasts, and casestudies anywhere. Your FREE membership allows you to:

  • Download an unlimited amount of content, including classic and current white papers, case studies, webcasts and more
  • Track content on your chosen topics of interest
  • Receive targeted email alerts when your favorite content is added
  • Save content for future reading
  • Receive our member newsletter

When you register to access this directory, you become a member of BNET. In addition, you allow us to share your information with companies that produce products or services featured in the library--so that such companies may contact you with information and offers regarding their products and services. This enables us to keep the library a free service. As a directory registrant, you will receive a complimentary subscription to the BNET member newsletter, The BNET Report. You can unsubscribe from this newsletter at any time. By clicking the Sign up button, you indicate that you agree to our Terms and Conditions and have read and understand our Privacy Policy (updated).