Which of the following is correct? A risk evaluation tool that was developed to assign a...
Which of the following is correct?
A risk evaluation tool that was developed to assign a probability and monetary impact of specified adverse events over a period of time and summarize the impact of a wide range of risk factors in a single measure?
A. Monte Carlo simulation
B. Scenario analysis
C. Sensitivity Analysis
D. Value-at-risk
Homework Answers
Correct answer is option D. Value - At - Risk.
VAR is risk evaluation tool that was developed to assign a probability and monetary impact of specified adverse events over a period of time and summarize the impact of a wide range of risk factors in a single measure.
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1. Concepts used in cash flow estimation and risk analysis You can come across different situations...
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please complete the remaining portions of the question. included extra pictures of answer choices to choose...
please complete the remaining portions of the question.
included extra pictures of answer choices to choose from so it is
easier.
We were unable to transcribe this imageTerm Monte Carlo simulation Concept or Definition A computer-generated probability simulation of the most likely outcome, given a set of probable future events The most likely scenario in a capital budgeting analysis A measure of the project's effect on the firm's earnings variability A method to determine market risk by using the betas...
Which of the following procedures does the text say is used most frequently by businesses when they do capital budgeting analyses? Monte Carlo simulation uses a computer to generate random sets of inputs, those inputs are then used to determine a trial NPV, and a number of trial NPVs are averaged to find the project's expected NPV. Sensitivity and scenario analyses, on the other hand, require much more information regarding the input variables, including probability distributions and correlations among those...
butirnu (20%) ) for each of the following 10 statements (2 marks each). of the Circle T (true) or F (false) xand y be two normal variables with mean values of μ. and μ. and standard deviationsoro, and ob respectively. The standard deviatice of y.yisơ (I)T F Let x be a normal variable with a mean of"nd standard deviation ofơ. The standard deviation of y-xls (2) TF 3 T F Ina Bemoulli sequence, the probability of a success event is...
butirnu (20%) ) for each of the following 10 statements (2 marks each). of the Circle T (true) or F (false) xand y be two normal variables with mean values of μ. and μ. and standard deviationsoro, and ob respectively. The standard deviatice of y.yisơ (I)T F Let x be a normal variable with a mean of"nd standard deviation ofơ. The standard deviation of y-xls (2) TF 3 T F Ina Bemoulli sequence, the probability of a success event is...
butirnu (20%) ) for each of the following 10 statements (2 marks each). of the Circle T (true) or F (false) xand y be two normal variables with mean values of μ. and μ. and standard deviationsoro, and ob respectively. The standard deviatice of y.yisơ (I)T F Let x be a normal variable with a mean of"nd standard deviation ofơ. The standard deviation of y-xls (2) TF 3 T F Ina Bemoulli sequence, the probability of a success event is...
Several types of analyses are available for evaluating a project's risk. In the following table, correctly identify the analysis being described. Scenario Analysis o Sensitivity Simulation Analysis Analysis 0 0 0 Estimates the NPV after a given period of time, assuming specific changes in the values of multiple key factors that could affect a project's NPV Uses an algorithmic method to pick values randomly from probability distributions to calculate a project's NPV Requires changes in one assumption at a time...
butirnu (20%) ) for each of the following 10 statements (2 marks each). of the Circle T (true) or F (false) xand y be two normal variables with mean values of μ. and μ. and standard deviationsoro, and ob respectively. The standard deviatice of y.yisơ (I)T F Let x be a normal variable with a mean of"nd standard deviation ofơ. The standard deviation of y-xls (2) TF 3 T F Ina Bemoulli sequence, the probability of a success event is...
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please complete the remaining portions of the question.
included extra pictures of answer choices to choose from so it is
easier.
We were unable to transcribe this imageTerm Monte Carlo simulation Concept or Definition A computer-generated probability simulation of the most likely outcome, given a set of probable future events The most likely scenario in a capital budgeting analysis A measure of the project's effect on the firm's earnings variability A method to determine market risk by using the betas...
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