CFA Practice Question

There are 147 practice questions for this study session.

CFA Practice Question

In a Monte Carlo method, interest rate paths are generated based on:

I. probability distribution.
II. volatility assumption.
III. the model itself.
Correct Answer: I, II and III

User Contributed Comments 1

User Comment
myron The Monte Carlo method is an alternative method for simulating a sufficiently large number of potential interest rate paths in an effort to discover how the value of a security is affected and involves randomly selecting paths in an effort to approximate the results of a complete pathwise valuation.
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