n NISM Certifications
VII NISM Series VII
Medium

Value at Risk (VaR) margin is collected to cover potential losses for ________ of the days.

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    25%

  2. B

    50%

  3. C

    90%

  4. 99%

    Correct answer

Why this is the answer

VaR is calculated using historical simulation methodology at 99% confidence level over one-day horizon for liquid stocks

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NISM Series VII Mock Test 6