value-at-risk

1 free lesson tagged value-at-risk across Business. Each one is a short sequence of focused steps with narration and a five-question quiz at the end — take them in any order, no signup required.

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Value at Risk, and the Question It Refuses to Answer

Value at Risk compresses a whole loss distribution into one number, which is why it was adopted everywhere and why it misleads. This lesson builds it three ways, shows the arithmetic case where it says diversification increased risk, and covers the coherence axioms that explain the failure and the measure regulators moved to instead.

9 steps·~14 min

Value at Risk, and the Question It Refuses to Answer

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