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The portfolio of another business unit has a 99 percent weekly VaR of £4.25 million (stated using a confidence limit approach). Describe what is meant in terms of a maximum loss.
A. There is a 99 percent chance that the portfolio will lose no more than £4.25 million in one week.
B. There is a 1 percent chance that the portfolio will lose no more than £4.25 million in any given week
C. There is a 99 percent chance that the portfolio will lose at least 1 percent in any given week
D. Cannot be determined from the data above (no wherewithal)
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