A 'What-If' Technique That Examines How a Result Will Change

question 5

Multiple Choice

A 'what-if' technique that examines how a result will change if the original predicted data are not achieved or if an underlying assumption changes is called:

• A)adjusted rate-of-return analysis.
• B)sensitivity analysis.
• C)internal rate-of-return analysis.
• D)net present value analysis.

---

Definitions:

Maurice Kendall

A British statistician known for his work in the field of statistics, notably the development of the Kendall rank correlation coefficient.

EMH

The Efficient Market Hypothesis, which states that share prices reflect all available information and are thus accurately priced.

Relevant Information

Data or facts that can influence decisions because they are pertinent and directly related to the issue at hand.

Fundamental Analysis

Fundamental analysis involves examining a company's financial statements, health, competitive position, and market trends to gauge its stock's value.