2012 CFAI Mock - Var Question determine, allocated, understand

kasinkei

Q16, the answers say:
The trading desks have the same risk budget
The combined daily VAR of the trading desks is less than SEK 20m
THe fixed income desk generates better returns on it’s allocated capital given it’s var.
I now understand why the second answer is correct but how would you determine if others are correct?
Thanks

joemoran

Wow, sounds like I was asking a question I shouldn’t ask. I read this thread while I was picking up my daughter, and it’s short question…it’s hard to read all in my tiny phone…we have one day left, and near the finish line. Thanks, pune. Good luck to all.