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Okay Thanks @emilioalzamora1 got my answer But about what you mentioned if say wealth invested in Y is decreased by 1%, how will we go about it Lets assume that Portfolion VaR is $9 Million, and Y's Component VaR is $3.5Mn So will the answer be 1% of 3.5mn? In short, then how will the component...

My question is Say a portfolio contains 3 assets namely X, Y and Z. It has a portfolio VaR of 'some' amount and the weights as well as marginal VaR of each position is given. Now the question asks that if Asset Y is deleted from the portfolio what will be its impact on the portfolio VaR , in...

@emilioalzamora1 All these concepts I have read at many places. But a little ambiguity still remains. My entire point of asking this was if a question is asked that 'if we delete a position from the portfolio, what impact will it have on VaR?' By definition the answer should be Component VaR of...

@David Harper CFA FRM The reading says both incremental and component VaR refers to the change in VaR due to deletion of a position/component. So what exactly is the difference between Incremental and Component VaR?

Is the Marginal Contribution of Marginal Risk given in this read akin to the MVaR given in the reading of Portfolio Risk: Analytical Methods(Jorion), becuase the formulas are not similar. It is pretty confusing as to what does this marginal contribution imply Marginal VaR or Componant VaR?