Value at Risk is one of the measures available to management to estimate the potential...
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Finance
Value at Risk is one of the measures available to management to estimate the potential loss in one day at a certain confidence level (usually 99% or 95%).
(a) Inspecting the quarterly charts for VaR, what can you say about the level of risk-taking before (2007) and after the crisis (2017)?
(b) What regulatory changes were responsible for such a large change in risk-taking behaviour
(c) What were the other factors that reduced risk-taking and VaR?
Daily VaR in millions) your applahenda Daily Trading Var First Quarter Third Quarter Fourth Quarter Second Ouarter 2007 The chart below reflects our daily VaR over the last four quarters. Daily VaR (sin millions) Wohnzimmer First Quarter 2017 Second Quarter 2017 Third Quarter 2017 Fourth Quarter 2017
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