Drawback of the simulation approach

Assignment Help Risk Management
Reference no: EM131538625

Which of the following is not a drawback of the simulation approach?

It can be very difficult to access and use a simulation program.

The probability distributions of the cash flows are subjective estimates.

There are no clear guidelines on how to interpret the results.

Cash flows in successive periods tend not to be independent.

Reference no: EM131538625

Questions Cloud

Write vision and mission statements for the county : Write vision and mission statements for the county health department that provides services to pregnant women
Ensure better capital budgeting decisions : Which of the following will ensure better capital budgeting decisions?
Contact the course teacher through the inbox link : If you have questions about the exam, contact the course teacher through the Inbox link.
What three steps are used to allocate expenses : Which of the following bases can be used to allocate supervisors' salaries across operating departments?
Drawback of the simulation approach : Which of the following is not a drawback of the simulation approach?
Development of protostomes and deuterostomes : Compare and contrast the structure and development of protostomes and deuterostomes.
How does the theory demonstrate evidence : How does the theory demonstrate evidence of the utilization of social, behavioral, or bioscience theories
Contrast gymnosperms and angiosperms : Compare and contrast gymnosperms and angiosperms. If you had to choose one group that was more evolutionarily advanced, what would it be and why?
Differentiate between a cost center and a profit center : If a company has two operating (selling) departments (shoes and hats) and two service departments (payroll and advertising), which of the following statements.

Reviews

Write a Review

Risk Management Questions & Answers

  What is the nature of the risk and who is at risk

What is the nature of the risk? Who is at risk? What additional information do you require? What actions can be taken to prevent recurrence of the incident?

  Develop a brief country risk assessment

Develop a brief country risk assessment. Determine the political, economic, social, and capital risks associated with doing business in China. What are the most important factors to consider? Why?

  Identify two risks or uncertainties that can arise

Identify two risks or uncertainties that can arise during the procurement process, and describe the strategies used to address those risks or uncertainties in the contract pricing document.

  International monetary fund

When was the International Monetary Fund established and describe this systems functions.

  Why did the traditional financial risk approaches

Why did the traditional financial risk approaches, methods, and tools fail in the financial market meltdown of 2008 - 2009?

  Construct an appropriate butterfly spread

You are considering a butterfly spread. Construct an appropriate butterfly spread using the October 160, 165, and 170 calls. Hold the position until expiration.

  Consider the prevailing conditions for inflation

Consider the prevailing conditions for inflation (including oil prices), the economy, interest rates, and any other factors that could affect exchange rates.

  Describe how credit risk embedded in corporate debt

Summarize three measures that the ISDA undertook to mitigate the credit risk inherent in OTC derivatives.

  Identify the breakeven stock price at minimum profits

Identify the breakeven stock price at expiration and the maximum and minimum profits. Discuss any special considerations associated with this strategy.

  Discuss the major psychological reasons for biases

List and explain the major puzzles related to individual investor trading.

  Business cycles and the general level of interest rates

What is the relation between business cycles and the general level of interest rates? Why is the relationship this way?

  Specific investments in their specialized factors

Assuming that the owners of labor and capital had to make prior specific investments in their specialized factors, explain the source of "failure"( or Pareto non-optimality) that emerges when the parties do not cooperate prior to participating the..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd