# Risk Management Quiz

Simple question: Which probability leads to a more conservative VAR estimate? A) .01 B) .05 C) I’m going to fail this thing

B easy does it abushey settle ur nerves n pull urself together …its def doable easy no but nothing worth having ever is now pull u ur skirt fix ur panties and lets go

A

1% var will be larger, conservative

good gravy goodman is right …lol in that case give me C

A

A, covers more probability, so larger number.

A

A

A - you are going deeper into the tails of the distribution.

Depends on what the question means by conservative. If it means “less extreme” it’s B. If it means from a risk budgeting perspective, then it’s A. But since I’m waffling and over-thinking, I’ll take C.

pimpineasy Wrote: ------------------------------------------------------- > good gravy goodman is right …lol in > that case give me C Great alliteration though. A as well. team_alex Wrote: ------------------------------------------------------- > Depends on what the question means by > conservative. If it means “less extreme” it’s B. > If it means from a risk budgeting perspective, > then it’s A. > > But since I’m waffling and over-thinking, I’ll > take C. A more extreme VAR is considered more conservative.