VaR exercise CFAI

CFA Level II Portfolio Management
#21

I also thought the question made absolutely no sense.

ERRATA 2020 CFA Level II

Reading 45
• In the practice problem information for questions 1–5 (page 385 of print), under the
heading “Trust Department’s Equity Fund”, item b, the first sentence should read as
indicated: “The Index Plus Fund has a value at risk (VaR) of $6.5 million at 5% for one
day.”

Now, B. makes sense.

#22

Good that CFAI has published this Erratum.

Still, I think option C is more accurate since it mentions that the loss expected is one-day loss specifically. 5% one-day VaR means, 5% of the time minimum one-day loss will be $6.5 million, or 95% of the time maximum one-day loss will be $6.5 million.
Please correct if my understanding is wrong.