How value at risk (VAR) helps estimate investment losses
When is it too much? © ChaoticDesignStudio/stock.adobe.com, © Nancy Pauwels/stock.adobe.com; Photo illustration Encyclopædia Britannica, IncA guiding principle in investing is to avoid losing so much money (or losing it so quickly) that recovery becomes impossible. Because market risk is a major driver of such losses, investment pros rely on various tools to estimate and manage it. Among these tools,...