Knowledge Base

← Financial Instruments, Crypto-Assets, and Their Risks

Questions

Which indicator is used to measure the historical volatility of a financial instrument?

Return variance
Standard deviation of returns
Sharpe ratio
Portfolio beta

What is the role of the Sortino ratio in volatility analysis?

Measure total return volatility
Isolate the volatility of negative returns
Calculate the maximum historical loss
Assess absolute portfolio performance

What is the minimum observation period required for VaR calculation according to the AMF General Regulation?

100 days
200 days
250 days
300 days

What is the minimum confidence interval required for Value at Risk (VaR) calculation according to Article 411-77 of the AMF General Regulation?

90%
95%
99%
100%

Value at Risk (VaR)

Click to see answer

Relative VaR can exceed twice the VaR of the reference portfolio according to the AMF General Regulation.

True
False

Categorize items by dragging them to the appropriate zones

Items to categorize:

Historical volatility
Value at Risk (VaR)
VaR-equivalent Volatility (VEV)
Tracking error
Categories:

Volatility

Market risk

Active management

A tracking error close to zero indicates active management that is significantly different from the index.

True
False