The Mathematics of Value-at-Risk
if there exists a non-negative function f defined for all real numbers, having the following property: For every set B of real numbers, P[XB] = . f. is the . Probability Density Function of X. In other words, the probability that X is in the set B can be found by integrating f over the set B. Since X must always take a value in the reals (ie. ................
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