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What does VaR have to do with maximization of shareholder wealth?

April 26, 2017maximization shareholder var wealth

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What does VaR have to do with maximization of shareholder wealth?

1 Answer

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10 Posted

Excellent question. A precise answer isn’t possible yet. This is troublesome, as one hopes that it is being used in ways that are consistent with the concept of shareholder wealth maximization, but we can’t be sure.