A. VaR does not provide information about how much could be lost in the portfolio over a given period of time but rather provides a worst case scenario and an estimation of how often that worst case scenario will occur (called a confidence interval).

B. VaR does not provide information about expected return on a portfolio, but rather provides a worst case scenario and an estimation of how often that worst case scenario will occur (called a confidence interval).

C. The Value-at-Risk model indicates the maximum loss over a given time period (here, one day) such that there is a low probability (here, a 1% probability, or 100% minus 99%), that the actual loss over the given period will be larger. The 1% probability translates to the event occurring on one out of every 100 trading days, or two to three days out of each year. Therefore, the portfolio will probably lose more than $500,000 of its value in a one-day period two or three times each year.

D. VaR does not provide information about the market value of a portfolio or how much could be lost in the portfolio over a given period of time but rather provides a worst case scenario and an estimation of how often that worst case scenario will occur (called a confidence interval).