(Question extract from previous CFA mock) Q: Which of the limitations of VAR analysis is most likely correct? A: VAR inaccurately measures risk exposure because it overestimates the magnitude and frequency of the worst returns. B: VAR incompletely measures risk exposure because it does not incorporate positive results into its risk profile. C: VAR incorrectly measures risk exposure because there are limited calculation methods and they often yield similar outcomes
B
B for sure.
Yeah, B.
Correct. Cheers!