What is Value at Risk, and what role did it play in the LTCM failure?
What will be an ideal response?
Value at Risk (VaR) is a statistical measure of market risk that LTCM relied on to measure its market risk exposures. At the 99% level of confidence, LTCM's econometricians assured the principals and investors that the company should lose no more than $105 million per day. The problem was that VaR assumes the future will be like the past, and
all possible future events fit neatly into a normally distributed, bell-shaped distribution function. Both of these assumptions proved to be incorrect in
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Name and briefly describe some considerations that intranet creators should keep in mind
What will be an ideal response?
Money deposited into FSAs can be rolled over into the next year, while HSA funds left over at the end of the year are forfeited
Indicate whether this statement is true or false.