- CFA Exams
- CFA Level I Exam
- Study Session 3. Quantitative Methods (2)
- Reading 9. Excerpt from Probabilistic Approaches: Scenario Analysis, Decision Trees, and Simulations
- Subject 3. An overall assessment of probabilistic risk assessment approaches
CFA Practice Question
Which approach cannot be used as a substitute for risk-adjusted value?
A. scenario analysis
B. decision trees
C. simulations
Explanation: Scenario analysis does not look at the full spectrum of possible outcomes.
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