An Inexperienced Business Analyst Has Been Asked to Conduct Scenario

question 2

Multiple Choice

An inexperienced business analyst has been asked to conduct scenario analysis. The notes he made about the topic during his training course are rather disorganized, with correct and incorrect assumptions grouped together. Which of the following notes he made about scenario analysis is incorrect ?

• A) A workshop discovery technique
• B) Can form the basis of test scripts
• C) Explicitly considers exception situations
• D) Helps to capture tacit knowledge

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Definitions:

Initial Cash Outlay

The upfront amount of cash needed to initiate a project or investment, including acquisition costs and other initial expenses.

SML Approach

Stands for Security Market Line, a graphical representation that shows the expected return of an investment as a function of its risk.

Cost of Equity

The return that investors require for an investment in a firm's equity, representing the compensation for bearing risk.

Growth Rate

The rate at which a company's earnings or revenue increases over a specified period.