Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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What are the different variables in sensitivity analysis?
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Answer:
Under a given set of expectations, a sensitivity analysis describes the way different values of an independent variable influence a specific dependent variable.
In other words, it is a forward projection tool employed by managers to effectively handle the risks inherent in planning and budgeting, It is also referred as what if analysis.
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