“Impose a daily 1% VaR limit of (for example) $2,000,000 on a portfolio. Monitor the portfolio for any signs of trending and liquidate the portfolio if cumulative monthly losses exceed $7,500,000.”
A. risk budgeting
B. a stop loss limit
C. a position limit
This is from Schweser practice exam vol1 exam 1 morning session Q57, solution says B.