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.
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