CFA Practice Question

There are 131 practice questions for this study session.

CFA Practice Question

Monte Carlo simulation is a tool for considering the:

A. Effect of changing one variable on the NPV of the project.
B. Effect of changing a limited number of plausible combination of variables on the NPV of the project.
C. Effect of changing all possible combinations of variables on the NPV of the project.
Correct Answer: C

User Contributed Comments 1

User Comment
sarath We can define the set of values that the variables can take and then the computer will pick all the combinations in random and generate the NPV values in each case..
You need to log in first to add your comment.