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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Question
- What is Sensitivity Analysis and why is it useful?
Expert Solution
Sensitivity Analysis:
The sensitivity analysis is utilized to comprehend the impact of a lot of autonomous factors on some reliant variable under certain particular conditions. The analysis use will rely upon at least one or more than one variable inside the particular limits, for example, the impact that varies in interest rate that make way for the change in stock price.
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