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Financial Risk Management (FRM)- 2026 Practice
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17
May 2026
2025/2026
A+
Market, Credit, Operational & Integrated Risk Management (100 Questions)
1. What is the primary definition of "Value at Risk" (VaR)?
A) The maximum profit a portfolio can make in a month
B) A statistical measure of the maximum potential loss over a specific time period at a given
confidence level
C) The average loss a company experiences annually
D) The total debt a company owes to its creditors
Correct Answer: B) A statistical measure of the maximum potential loss over a specific
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