Which of the Following Is True of the Comparison Between

question 12

Multiple Choice

Which of the following is true of the comparison between simulation and regression?

• A)The simulation method requires much more judgement on the part of the analyst than regression.
• B)The simulation method requires that the past history of the firm provide the best estimate of the future than regression.
• C)The simulation method is inferior to regression estimation using historical data.
• D)The simulation method is a backward-looking method of estimating risk exposure,whereas regression method is forward-looking.

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