n NISM Certifications
NSM General NISM
Medium

If the 1-day VaR at 99% confidence level for a security is Rs. 17, what does it mean?

Practice question from NISM Series IV - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    There will be loss over the next day with 99% probability, and the loss will be over Rs. 17

  2. There will be loss over the next day with 99% probability, and the loss will not be over Rs. 17

    Correct answer

  3. C

    There will be profit over the next day with 99% probability, and the profit will not be over Rs. 17

  4. D

    None of the above

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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NISM Series IV - Mock Test 4