CIMA Exam CIMAPRO19-P03-1 Topic 2 Question 89 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 89
Topic #: 2

[All CIMAPRO19-P03-1 Questions]

Which of the following best describes the relevance of value at risk (VaR) as a decision tool?

AVaR quantifies past volatility

BVaR quantifies future volatility

CVaR quantifies the maximum loss that could ever be incurred

DVaR can only measure downside risk

Show Suggested Answer

Suggested Answer: B, D, E

by Clarinda at Mar 24, 2025, 04:31 PM

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Tracey

1 months ago

VaR? More like 'Volatility, Anxiety, and Regret,' am I right? This exam question is giving me all the feels.

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Melynda

1 months ago

Wait, so VaR doesn't measure the maximum loss that could ever be incurred? That's like saying a parachute doesn't guarantee a safe landing. What's the point then?

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Izetta

5 days ago

D) VaR can only measure downside risk

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Gail

13 days ago

C) VaR quantifies the maximum loss that could ever be incurred

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Nada

14 days ago

A) VaR quantifies past volatility

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Karl

1 months ago

VaR can only measure downside risk? That's a bit of a bummer. I was hoping it could tell me about the upside potential too. Oh well, can't have it all I guess.

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