About Scenario Analysis

[Phoebe]

I don't quite understand why 'Scenario analysis can be applied in situations where there are numerous distribution functions involved', would you please elaborate?

 

[Aleksander Hansen]

Why would that be a problem? Maybe easier to answer if you can be a little more specific by elaborating on your question or point to where the problem/doubt arises, or just give an example.

 

[aimjo]

Even I face same problem as Phoebe. The content from chapter 2 Dowd is difficult to comprehend.

It is detailed in reading Part 1: VaR : Measures of financial risk"