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value at risk
value at risk definition - finance
A
risk-management technique that measures market risk found in portfolios and
decomposes it into individual risk factors that can be quantified and managed.
Statistical analysis can be used to estimate the potential loss from adverse
price movements. Although value at risk is a useful tool, it only provides an
estimate of what losses might be and only gives a probability of events
happening.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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