- CFA Exams
- CFA Exam: Level II 2021
- 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
Sequential risks can be modeled by using ______.
II. decision trees
III. simulations
I. scenario analysis
II. decision trees
III. simulations
Correct Answer: II and III
Scenario analysis can be used to model concurrent risks.
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