Scenario Analysis Involves Changing One Input to a Financial Forecast,whereas

question 11

True/False

Scenario analysis involves changing one input to a financial forecast,whereas sensitivity analysis involves changing multiple inputs.

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Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of all numbers by the count of numbers.

Investment

The allocation of resources, usually financial, in expectation of generating an income or profit.

Portfolio Expected Return

The weighted average of the expected returns of the assets in an investment portfolio.

Equal Investment

A strategy where equal amounts of capital are allocated to each investment within a portfolio.