- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 4. Common Probability Distributions
- Subject 12. Monte Carlo Simulation
CFA Practice Question
Consider the following statements:
II. Monte Carlo simulation allows us to experiment with a proposed policy before actually implementing it.
III. Monte Carlo simulation is used to develop estimates of Value at Risk.
I. Monte Carlo simulation is used to generate a large number of random samples from a probability distribution.
II. Monte Carlo simulation allows us to experiment with a proposed policy before actually implementing it.
III. Monte Carlo simulation is used to develop estimates of Value at Risk.
Which of the following is (are) TRUE?
A. I and III
B. II and III
C. All of the above
User Contributed Comments 0
You need to log in first to add your comment.