Value at Risk is your digital assistant for quantitative risk assessment of equity portfolio on demand. Input: 1) expected return, 2) volatility, and 3) your confidence level in percent. Assuming the underlying distribution is a bell curve (normal distribution), Value at Risk estimates the potential downside of P99, P95, P90 or any desired confidence levels. By playing what-ifs and different scenarios, investors will develop a better feel for downside risk exposure, i.e., the "worst" percent portion of the bell curve. For reference on methods, see "An Introduction to Value at Risk (VaR)" at Investopedia.com.
“Return twelve percent and volatility thirty three percent”
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