VaR-does the calculated result of positive or negative value make a difference

CFA Level III
#1

say if my std = 5% and we are talking about 1% chance, so p=2.33, here is the thing, if E® = 3%, my VaR would be 3%-1.165%=2.8835%, but if my E® is -1.7185, my VaR is -2.8835%, we are interpreting those two VaR the same way? or no? Thanks

#2

your VAR would be

-8.65%

3 - 2.33 * 5 = -8.65%

if you want to use the % inside

do

0.03 - 2.33 ( 0.05) = -0.0865

both of which are the same answer…

Please do not do partial multiplication assignment like you have done… either use the % fully or not at all. Both answers MUST be the same.

#3

ye right sorry my bad, but ye you get the idea, so no matter if the VaR is positive or negative or what the E® level is , we only care about the absolute number and the interpretation is solely based on that?

#4

The VAR # WOULD BE ALWAYS A NEGATIVE #