The Random Numbers Used in Monte Carlo Simulations Come From

question 32

Multiple Choice

The random numbers used in Monte Carlo simulations come from: I) any source II) computer generated numbers III) a table of random numbers

• A) I only
• B) II only
• C) III only
• D) II or III
• E) I, II, or III

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Definitions:

Equilibrium

A state in which market supply and demand balance each other, and as a result, prices become stable.

Preferred Stockholders

Investors who own shares that typically do not have voting rights but have a higher claim on assets and earnings than common stockholders, such as receiving dividends before them.

Liquidation Proceeds

The funds that are received as a result of liquidating, or selling off, a company's assets, typically occurring during bankruptcy or when a company closes.

Tax Deductible

Expenses that can be subtracted from gross income to reduce the amount of income subject to tax.