Value is risk is just a statistical feature of probability distribution (the hard part is specifying the probability distribution): VaR is the quantile associated with a selected probability; i.e., what's the worst that can happen with some level of confidence?
See David's XLS here: http://trtl.bz/1008-what-is-var
See David's XLS here: http://trtl.bz/1008-what-is-var
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