'/><rect width='800' height='360' fill='url(%23dots)'/><g transform='translate(180 90)'><rect x='0' y='40' width='280' height='130' rx='10' fill='%23ffffff' fill-opacity='0.18' transform='rotate(-6 140 105)'/><rect x='10' y='30' width='280' height='130' rx='10' fill='%23ffffff' fill-opacity='0.35' transform='rotate(-2 150 95)'/><rect x='20' y='20' width='280' height='130' rx='10' fill='%23ffffff' fill-opacity='0.95'/><circle cx='160' cy='85' r='28' fill='none' stroke='%23FF801E' stroke-width='3' stroke-opacity='0.5'/><text x='160' y='95' font-size='34' font-weight='900' fill='%23FF801E' text-anchor='middle' font-family='Arial,sans-serif'>₹</text><rect x='40' y='40' width='80' height='5' rx='2' fill='%23FF801E' fill-opacity='0.3'/><rect x='40' y='130' width='100' height='5' rx='2' fill='%23FF801E' fill-opacity='0.3'/><g transform='translate(330 100)'><ellipse cx='0' cy='30' rx='28' ry='8' fill='%23ffffff' fill-opacity='0.4'/><ellipse cx='0' cy='15' rx='28' ry='8' fill='%23ffffff' fill-opacity='0.6'/><ellipse cx='0' cy='0' rx='28' ry='8' fill='%23ffffff' fill-opacity='0.95'/><text x='0' y='4' font-size='12' font-weight='800' fill='%23FF801E' text-anchor='middle' font-family='Arial,sans-serif'>₹</text></g></g></svg>)
Options
-
There is 99% chance that the loss in the portfolio in one week will not exceed ₹10 lakhs
Correct answer
- B
There is 1% chance that the variance in the portfolio value will be less than ₹10 lakhs
- C
There is 1% chance that the weekly loss in the portfolio will exceed ₹1 lakh
- D
There is 99% chance that the variance in the portfolio value would be ₹10 lakhs
Why this is the answer
Value at Risk (VaR) measures the maximum loss a portfolio can suffer at a given confidence level. A 1% weekly VaR of ₹10 lakhs indicates a 99% probability that losses will not exceed ₹10 lakhs in a week, with a 1% chance of exceeding it.
Test yourself for real
Take a full NISM Series XV mock test.
Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.