Which of the following statements is most correct? Sensitivity analysis is a good way to measure market risk because it explicitly takes into account diversification effects. One advantage of sensitivity analysis relative to scenario analysis is that it explicitly takes into account the probability of certain effects occurring, whereas scenario analysis does not consider probabilities. Simulation analysis is a computerized version of scenario analysis that uses continuous probability distributions of the input variables. O All of the statements are correct.
Which of the following statements is most correct? Sensitivity analysis is a good way to measure market risk because it explicitly takes into account diversification effects. One advantage of sensitivity analysis relative to scenario analysis is that it explicitly takes into account the probability of certain effects occurring, whereas scenario analysis does not consider probabilities. Simulation analysis is a computerized version of scenario analysis that uses continuous probability distributions of the input variables. O All of the statements are correct.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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