- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 4. Common Probability Distributions
- Subject 12. Monte Carlo Simulation

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**CFA Practice Question**

Consider the following statements:

II. Historic simulation is an alternative to Monte Carlo simulation.

III. Bootstrapping is a statistical method that falls into a type of Monte Carlo analysis.

IV. Historic simulation can be as flexible as Monte Carlo simulation.

I. Historic simulation is sometimes called regressive simulation.

II. Historic simulation is an alternative to Monte Carlo simulation.

III. Bootstrapping is a statistical method that falls into a type of Monte Carlo analysis.

IV. Historic simulation can be as flexible as Monte Carlo simulation.

Which is true?

Correct Answer: II

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