sachin_patel
New member
- Nov 9, 2013
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when calculating VAR from historical number and if the return number is not whole number, which approach to take?
i.e.
for example 6,
there are 240 returns.
1% var = 2.4th return.
Book said you can either take 2nd return or average of the two?
what approach should be worry free for exam?
Can I always take avg and use it?
i.e what if the return is 2.9th return and if I take average, it might actually be wrong..
i.e.
for example 6,
there are 240 returns.
1% var = 2.4th return.
Book said you can either take 2nd return or average of the two?
what approach should be worry free for exam?
Can I always take avg and use it?
i.e what if the return is 2.9th return and if I take average, it might actually be wrong..
f course he would. it is called “linear interpolation”.