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Exam Code: C_S4CPS_1911

Exam Name: SAP Certified Application Associate - SAP S/4HANA Cloud - Professional Services Implementation

Version: V15.35

Q & A: 208 Questions and Answers

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NEW QUESTION: 1
Which of the formulae below describes incremental VaR where a new position 'm' is added to the portfolio?
(where p is the portfolio, and V_i is the value of the i-th asset in the portfolio. All other notation and symbols have their usual meaning.) A)

B)

C)

D)

A. Option C
B. Option A
C. Option D
D. Option B
Answer: B
Explanation:
Explanation
Incremental VaR is the change in portfolio VaR resulting from a change in a single position. This is accurately described by VaR_(p+a) - VaR_p. The other answers are incorrect, and describe other concepts.
It is important to know and understand the ideas behind MVaR (marginal VaR), CVaR (component VaR) and iVaR (incremental VaR), and the differences between them.

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