Value at Risk Model - Mahindra and Mahindra Ltd.

 

Value at Risk (VAR) is a statistical measure used in finance to quantify the potential loss on a portfolio of assets over a specific time horizon and with a certain level of confidence. It helps risk managers assess and manage the potential downside risk of their investments, informing decision-making.

I have explained VAR through two approaches:

1. Historical Approach

2. Monte-Carlo Simulation

 * This is for the Educational Purpose only.




Comments

Popular posts from this blog

Power BI Dashboard

WACC Modelling