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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?

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Suggested Answer: B, D, E

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

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Tracey
3 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
3 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
2 months ago
D) VaR can only measure downside risk
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Gail
2 months ago
C) VaR quantifies the maximum loss that could ever be incurred
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Nada
3 months ago
A) VaR quantifies past volatility
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Karl
3 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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Vicki
3 months ago
I think option B is the correct answer. VaR is all about quantifying future volatility, which is crucial for making informed investment decisions.
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Aileen
2 months ago
Yes, VaR is important for making informed investment decisions.
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Jeannetta
3 months ago
I believe VaR quantifies future volatility.
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Kenia
3 months ago
I think option B is the correct answer.
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Thurman
4 months ago
I'm not sure if VaR is the best decision tool. It seems to only focus on past volatility, which may not be that useful for future decision-making.
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Loren
2 months ago
True, but it's still a valuable tool to have in risk management.
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Stephanie
2 months ago
I agree, but it's important to consider that VaR can only measure downside risk.
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Antione
2 months ago
I think VaR quantifies the maximum loss that could ever be incurred.
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Billye
4 months ago
But VaR is used to estimate potential losses, so I still think C) is the best description.
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Kasandra
4 months ago
I disagree, I believe the answer is D) VaR can only measure downside risk.
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Billye
4 months ago
I think the answer is C) VaR quantifies the maximum loss that could ever be incurred.
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