Which of the Following Statements Is Not Correct

question 95

Multiple Choice

Which of the following statements is not correct?

• A)Information plays an important role in the economy.
• B)Asymmetric information may lead to the disappearance of a market.
• C)It is always desirable for a person to have more information than the person he is trading with.
• D)Adverse selection will not occur if there is no asymmetric information.

---

Definitions:

Forecasting Risk

The potential for loss or error in a business's financial or operational forecasts, affecting its planning and decision-making ability.

Sensitivity Analysis

A financial model used to estimate how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Scenario Analysis

Scenario analysis is a process of analyzing possible future events by considering alternative possible outcomes (scenarios), thereby assessing the impact of various factors on decision outcomes.

Simulation Analysis

A method used in risk management that uses statistical models to predict the outcome of a decision under conditions of uncertainty.