CFA Practice Question

There are 155 practice questions for this study session.

CFA Practice Question

If scenario analysis is used as a complement to risk-adjusted value, ______ should be used as the discount rate.
A. the risk-free rate
B. a risk-adjusted discount rate
C. the market rate
Explanation: This approach uses expected cash flows, which should be discounted by a risk-adjusted discount rate.

User Contributed Comments 1

User Comment
chriswwu If we change the question from scenario analysis to simulation, then A should be the answer. Am I correct?
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