The-definition.com

Definition

Value at risk (VAR)

Value at risk (VAR) is the value of the worst probable loss likely to occur in a given time period under regular market conditions at some level of confidence.

Share it:  Cite

More from this Section

  • Forward Discount
    Forward Discount is the term applied to a foreign currency which is less expensive to ...
  • Correspondent banking
    Correspondent banking is a system of formal and informal relationships among large and ...
  • Nondiversifiable risk
    Nondiversifiable risk is a risk that affects the entire economy or large numbers of persons ...
  • Deposit Banking
    Pure deposit banking has its origin in England. Banks in England were only confined to ...
  • Capital Assets Pricing Model-CAPM
    The CAPM explains the behavior of security prices and provides a mechanism whereby investors ...