Based on the information in Exhibit 1 and assuming Mercury uses the analytical method for calculating VaR, which of Mercury’s industry-specific lending units most likely has the lowest annual VaR?
Energy
Media and entertainment
Technology
Sure, if you convert the 3 VaR to annual, you got the answer. Fast. Pretty simple.
However, if I agree the final answer, I disagree the method. Here we are comparing VaR with 3 confidence levels on 3 different assets.
Does it seems pragmatic for you?
We maybe should have first compute the 3 VaR with the same confidence level. This calculation lead to the same final results.
What do you think guys?
Energy
Media and entertainment
Technology
Sure, if you convert the 3 VaR to annual, you got the answer. Fast. Pretty simple.
However, if I agree the final answer, I disagree the method. Here we are comparing VaR with 3 confidence levels on 3 different assets.
Does it seems pragmatic for you?
We maybe should have first compute the 3 VaR with the same confidence level. This calculation lead to the same final results.
What do you think guys?