CIMA Exam CIMAPRO19-P03-1 Topic 3 Question 98 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 98
Topic #: 3

[All CIMAPRO19-P03-1 Questions]

Will owns $400,000 of shares in Company X.

Company X has a daily volatility of 1% of its share price.

Calculate the 28 day value at risk that shows the most Will can expect to lose during a 28 day period.

(Will wishes to be 90% certain that the actual loss in any month will be less than your predicted figure).

Give your answer to the nearest $000.

A$27

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Suggested Answer: A

by Goldie at Oct 29, 2025, 04:21 PM

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Laticia

3 days ago

This seems straightforward enough. I'll use the square root of time rule to scale up the daily volatility to a 28-day period, and then find the 90% quantile to get the VaR.

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Phuong

9 days ago

Okay, I see the daily volatility is 1% of the share price. That's a good starting point. Now I just need to figure out how to convert that to a 28-day VaR.

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Lindy

14 days ago

Hmm, this looks like a value at risk calculation. I'll need to find the daily volatility and then scale it up to a 28-day period to get the 90% VaR.

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