WHICH OF THE FOLLOWING IS LEAST LIKELY AN ADVANTAGE OF USING VAR AS...

7. Which of the following is least likely an advantage of using VaR as a risk measure?

A. VaR is a relatively simple concept, hence decision makers are not required to have a

technical background to understand its implications.

B. VaR is useful in comparing risk within a particular asset class.

C. VaR can be used in capital allocation decisions of trading units or portfolios by providing

management with a benchmark.