CFA Practice Question

There are 119 practice questions for this study session.

CFA Practice Question

The main disadvantage of the Monte Carlo simulation is that is ______.

A. is based on the assumption that history will repeat itself, from a risk perspective.
B. cannot accommodate portfolios with embedded options.
C. can be complex and time-consuming to use.
Correct Answer: C

The Monte Carlo simulation method is extremely flexible but can be complex and time-consuming to use.

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