A Critical Assumption in Monte Carlo Simulations Is That Valuation

question 9

Multiple Choice

A critical assumption in Monte Carlo simulations is that valuation is based on:

• A) Random variables
• B) True probabilities
• C) Risk-neutral probabilities
• D) None of the above

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Auxiliary Section

A supplementary part of a device, machine, or system serving an additional or secondary function.

Covert Code

A hidden or secret code used for secure communication.

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