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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10 days ago

But VaR is used to estimate potential losses, so I still think C) is the best description.

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12 days ago

I disagree, I believe the answer is D) VaR can only measure downside risk.

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14 days ago

I think the answer is C) VaR quantifies the maximum loss that could ever be incurred.

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