Knowledge Base

← Financial Instruments, Crypto-Assets, and Their Risks

Questions

What is the minimum required frequency for VaR calculation according to regulations?

Weekly
Monthly
Daily
Quarterly

What is the minimum confidence interval required for Value at Risk (VaR) calculation according to regulations?

90%
95%
99%
100%

What is the maximum overall risk limit calculated under the commitment approach for standard UCITS?

50% of the portfolio's net value
100% of the portfolio's net value
150% of the portfolio's net value
200% of the portfolio's net value

What is the generally established threshold for absolute VaR as a percentage of net assets?

10%
15%
20%
25%

Stress tests must be conducted at least monthly and cover all significant risks in the portfolio.

True
False

Stress tests are not mandatory according to ESMA guidelines and AMF Position DOC-2020-08.

True
False

Definition of market risk according to the AMF

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Items to categorize:

99% confidence interval
Interest rate shocks
Minimum one-year historical observation period
Sharp equity price movements
Categories:

Regulatory parameters

Extreme scenarios