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Trading Terms

Value at Risk (VaR)

In the world of finance, it is important to understand the concept of exposure within a portfolio. This refers to the level of risk associated with the securities included in a portfolio. It is calculated based on the recent performance of these securities. This measure gives an estimate of the potential losses that a portfolio may incur. As a knowledgeable professor, it is crucial to grasp this concept in order to make informed investment decisions.

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