What is VaR (Value at Risk)?

Описание: In this Quintedge educational short, we delve into the concept of Value at Risk (VaR), a critical metric in finance for assessing the risk of loss on a specific portfolio. Designed for finance students, professionals, and anyone interested in understanding financial risk management, this video provides a clear and concise definition of VaR, accompanied by an illustrative example to enhance your understanding.

Value at Risk (VaR) is a statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over a specific time frame. This metric estimates the maximum potential loss with a given probability, known as confidence level, under normal market conditions.

Join us at Quintedge as we unpack this fundamental risk management tool. Understanding VaR is essential for anyone involved in finance, as it helps in making informed decisions and in effectively managing potential losses.

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