A recently published article on issues with value at risk (VaR) estimates included the following statements.
Statement 1: Differences in the use of confidence intervals and time horizon can cause significant variability in VaR estimates as there is lack of uniformity in practice.
Statement 2: Standardization of confidence interval and time horizon would eliminate most of the variability in VaR estimates.
The article’s statements are most likely correct with regard to:
AStatement 1 only.
BStatement 2 only.
CBoth statements.
DNeither statement.
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