Long-term value at risk

Dowd, K., Blake, D. & Cairns, A. (2003). Long-term value at risk. (Financial Markets Group Discussion Papers 468). Financial Markets Group, The London School of Economics and Political Science.
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This paper investigates the estimation of long-term VaR. It also suggests a simple approach to the estimation of long-term VaR that avoids problems associated with the square-root rule for extrapolating VaR, as well as those associated with attempts to extrapolate day-to-day volatility forecasts over longer horizons.

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