The Risk That Errors Can Occur in Inputs to a Pricing

question 39

Multiple Choice

The risk that errors can occur in inputs to a pricing model is called

• A)input risk
• B)model risk
• C)pricing risk
• D)valuation risk
• E)none of the above

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Definitions:

Debt to Equity

A financial metric that shows the comparative amount of debt and shareholders' equity utilized to fund a company's assets.

Financial Information

Reports and metrics detailing the economic status and performance of a company or individual.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs and expenses involved in making a product or providing a service.

Financial Information

Data regarding the financial operations, status, and health of an entity, including statements, transactions, and performance metrics.