- CFA Exams
- CFA Exam: Level II 2021
- Study Session 7. Corporate Finance (1)
- Reading 19. Capital Budgeting
- Subject 3. Risk analysis of capital investments - stand-alone methods
CFA Practice Question
_________ allows a firm to ask what-if type questions in capital budgeting.
II. Sensitivity analysis
III. Simulation analysis
IV. Break-even analysis
I. Scenario analysis
II. Sensitivity analysis
III. Simulation analysis
IV. Break-even analysis
Correct Answer: I, II and III
User Contributed Comments 2
| User | Comment |
|---|---|
| sarath | Scenario Analysis includes Sensitivity analysis.. Simulation includes scenario analysis.. |
| alai2008 | III includes options I and II. |