To address geopolitical risks, investors very often takes the approach of ______ to evaluate portfolio outcomes across potential circumstances or states of the world.

A. Sensitivity Analysis
B. Scenario Analysis
C. Monte Carlo Simulation

Correct Answer: B

This is the technique of analyzing portfolio performance across various situations or global states. A team's commitment to its priorities and reaction can be strengthened through scenario analysis. Scenarios can take the form of qualitative analysis, quantitative measurement, or both.