In Which Stage of the Simulation Methodology Do You Determine

question 69

Multiple Choice

In which stage of the simulation methodology do you determine the variables and gather data?

• A) defining the problem
• B) designing the experiment
• C) testing and validating the model
• D) constructing the simulation model

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Definitions:

Marginal Investor

An investor whose actions might influence the market price of a security and who is typically sensitive to changes in risk levels or return.

Required Rate

The minimum return an investor expects to achieve by investing in a particular asset, also known as the required rate of return.

Expected Rate

The return that an investor anticipates or estimates will be achieved over a certain period on an investment.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.