What is value at risk (VaR)? FRM T1-02

Value at risk is just a statistical feature of the probability distribution (the hard part is specifying the probability distribution): VaR is the quantile associated with a selected probability; i.e., what's the worst that can happen with some level of confidence? (Here is my XLS http://trtl.bz/1008-what-is-var) 💡 Discuss this video here in our FRM forum: https://trtl.bz/2D1gWlD 👉 Subscribe here https://www.youtube.com/c/bionicturtl... to be notified of future tutorials on expert finance and data science, including the Financial Risk Manager (FRM), the Chartered Financial Analyst (CFA), and R Programming! ❓ If you have questions or want to discuss this video further, please visit our support forum (which has over 50,000 members) located at http://bionicturtle.com/forum 🐢 You can also register as a member of our site (for free!) at https://www.bionicturtle.com/register/ 📧 Our email contact is [email protected] (I can also be personally reached at [email protected]) For other videos in our Financial Risk Manager (FRM) series, visit these playlists: ▶️ Texas Instruments BA II+ Calculator https://www.youtube.com/playlist?list=PLCBifSfCnx3sjobyTnEyv2N4baxF8-wiS 1️⃣ Risk Foundations (FRM Topic 1) https://www.youtube.com/playlist?list=PLCBifSfCnx3sm2OmHA1BO41Zcc4ntUwMG 2️⃣ Quantitative Analysis (FRM Topic 2) https://www.youtube.com/playlist?list=PLCBifSfCnx3sormazeHQr5G9etDITYStF 3️⃣ Financial Markets and Products: Intro to Derivatives (FRM Topic 3, Hull Ch 1-7) https://www.youtube.com/playlist?list=PLCBifSfCnx3tQuvaS-lG-8ZqUh7NvxRDg 4️⃣ Financial Markets and Products: Option Trading Strategies (FRM Topic 3, Hull Ch 10-12) https://www.youtube.com/playlist?list=PLCBifSfCnx3s7iycLx2eZQeIUPo_4a8n8 ▶️ FM&P: Intro to Derivatives: Exotic options (FRM Topic 3) https://www.youtube.com/playlist?list=PLCBifSfCnx3sfoUGYayuqJRhHA5jCFkGr 4️⃣ Valuation and Risk Models (FRM Topic 4) https://www.youtube.com/playlist?list=PLCBifSfCnx3sqbQnW4HkZ3HoScTG0Lluz 5️⃣ Market Risk (FRM Topic 5) https://www.youtube.com/playlist?list=PLCBifSfCnx3tjKeATSR41KW35xRJ9C5U_ Coming Soon .... 6️⃣ Credit Risk (FRM Topic 6) 7️⃣ Operational Risk (FRM Topic 7) 8️⃣ Investment Risk (FRM Topic 8) 9️⃣ Current Issues (FRM Topic 9) ▶️ For videos in our Chartered Financial Analyst (CFA) series, visit these playlists: Chartered Financial Analyst (CFA) Level 1 Volume 1 https://www.youtube.com/playlist?list=PLCBifSfCnx3uvB-bf5flMe0gRt0fGyvuz #bionicturtle #risk #financialriskmanager #FRM #finance #expertfinance Our videos carefully comply with U.S. copyright law which we take seriously. Any third-party images used in this video honor their specific license agreements. We occasionally purchase images with our account under a royalty-free license at 123rf.com (see https://www.123rf.com/license.php); we also use free and purchased images from our account at canva.com (see https://about.canva.com/license-agreements/). In particular, the new thumbnails are generated in canva.com. Please contact [email protected] or [email protected] if you have any questions, issues or concerns.