Which of the Following Statements Is Correct

question 7

Multiple Choice

Which of the following statements is correct?

• A)Sensitivity analysis is a good way to measure market risk because it explicitly takes into account diversification effects.
• B)One advantage of sensitivity analysis relative to scenario analysis is that it explicitly takes into account the probability of specific effects occurring, whereas scenario analysis cannot account for probabilities.
• C)Simulation analysis is a computerized version of scenario analysis where input variables are selected randomly on the basis of their probability distributions.

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Definitions:

Age Cohorts

Groups of individuals who share similar ages and, therefore, likely experience similar societal events and cultural shifts at similar stages in life.

Tall People

Individuals who are significantly above the average height compared to the general population.

Profession

A vocation requiring specialized knowledge and often long and intensive academic preparation, characterized by a commitment to service and a set of ethical standards.

Presidency

The office or position of the president, often referring to the executive head of a country or organization.