I think i’ve been studying too much, but this statement hexes me. “A change to a 99% confidence level would provide a lower VAR estimate”
Wouldn’t it provide a bigger loss estimate, not lower? Or am I just confusing myself with how it is worded.
that statement is wrong. 99% VAR would be greater than a 95% VAR.
ok good, so i’m not going crazy. Maybe there is some errata for that question that I’m unaware of. Thanks
that was someone’s statement in the text … and a possible potential question. They asked about the next set of statements, not about this …
so not an erratum.
the question was shitty and worded to cause confusion - I agree