Couldn't find practice question for Linda Allen, Chapter 3: Putting VaR to Work

[Steve Jobs]

I couldn't find the practice question for Linda Allen, Chapter 3: Putting VaR to Work at the Study planner.

There is no practice question? If not, is it because it is covered on other chapters?

 

[David Harper CFA FRM]

Hi Steve, that is true. In writing T4 question, I decided (last year) to skip Allen Chapter 3 and start with the Hull binomial. Largely, this is because the VaR in that chapter is somewhat embedded (covered) otherwise, although I will try to cover it this year as, given the lack of churn in P1, this year we can fill all the gaps (it's a judgement call, where to focus the fresh questions....). thanks, David

 

[Steve Jobs]

I'll use this as an excuse for not reading the text book, at least for now.
Thanks David

 

[David Harper CFA FRM]

LOL ... honestly i think that's fine, IMO the only usable concept is delta-normal VaR, which you otherwise get practice on. The back half of this chapter is non trivial and, to my knowledge, has never really been tested. This eight year old chapter is weak, given it is supposed to introduce T4 VaR.
... so actually, I don't think i will LITERALLY try to fill this reading gap in 2012, on reflection, as it has little long-term utility.
... instead, i just started my 2013 Recommendations for GARP list (delete Allen Ch 3 in place of better VaR introduction) with its first entry

Thanks!