- CFA Exams
- CFA Exam: Level II 2021
- Study Session 16. Portfolio Management (1)
- Reading 45. Measuring and Managing Market Risk
- Subject 2. Other Key Risk Measures
CFA Practice Question
What is a limitation of sensitivity analysis?
B. It does not often distinguish assets by volatility.
C. It assumes a normal distribution of returns.
A. It needs to rely on history.
B. It does not often distinguish assets by volatility.
C. It assumes a normal distribution of returns.
Correct Answer: B
Sensitivity analysis does not need to rely on history or assume a normal distribution.
User Contributed Comments 0
You need to log in first to add your comment.