Advantages/Disadvantages of VAR could, doubt

brain_wash_your

Little doubt that VAR could show up in the exam. Advantages/Disadvantages of VAR?
Not in the schweser notes.

mik82

VAR blows. Live it. Learn it. Know it.

Darien

the sharpe ratio also does not appear anywhere in the schweser notes. could someone please enlighten me as to this obscure and rarely mentioned formula?

wake2000

Sure it's in the Schweser Notes.

From memory:

Advantage would be being able to compare and combine very dissimilar asset classes or business units with (depending on the method of calculation) no assumption of distribution normality.

Disadvantage is primarily that it doesn't provide any sense of the shape of the distribution exceeding the VAR loss.