Which of the Following Is a Method That Is Commonly

question 15

Multiple Choice

Which of the following is a method that is commonly used to incorporate risk?

• A)Avoid risky capital needs projections
• B)Use Monte Carlo simulation
• C)Be more conservative in our simple capital needs projections
• D)Both a and b
• E)Both b and c

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Definitions:

Marginal Utility

The extra pleasure or benefit received from using an additional unit of a product or service.

Consumer Surplus

The financial gap between the potential spending by consumers on a product or service versus their actual spending.

Marginal Utility

The added enjoyment or advantage gained by using one more unit of a good or service.

Marginal Utility

The additional satisfaction or benefit received by consuming one more unit of a good or service.