) AN ADVANTAGE OF THE BANK'S METHOD FOR ESTIMATING VAR IS THE
3.) An advantage of the bank's method for estimating VaR is the:
A.
simplicity of the method.
B.
assumption that returns are normally distributed.
C.
ability to incorporate optionality into the analysis.
Answer = A
The analytical model uses readily available data and simple calculations.
“Risk Management,” by Don M. Chance, Kenneth Grant, and John Marsland