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Value at risk
Meaning
Noun
●
In Banking & Finance:
A
widely
used
measure
of the risk of
loss
on a specific
portfolio
of financial
assets
. For a given
portfolio
,
probability
and
time horizon
, VaR is a
threshold
value
such that
the
probability
that the
mark-to-market
loss
on the
portfolio
over the given
time horizon
exceeds
this value (assuming
normal
markets
and no
trading
) is the given
probability
level.
Sourced from
Wiktionary
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