Question：
Monte Carlo simulation is best described as:
A. a restrictive form of scenario analysis.
B. providing a distribution of possible solutions to complex functions.
C. an approach to backtest data.
Answer = B
Monte Carlo simulation provides a distribution of possible solutions to complex functions. The central tendency and the variance of the distribution of solutions give important clues to decision makers regarding expected results and risk.
CFA Level I
"Common Probability Distributions," Richard A. DeFusco, Dennis W. McLeavey, Jerald E. Pinto, and David E. Runkle
Section 4
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权威名师倾情打造，助力通过金融第一考 |
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权威名师倾情打造，助力通过金融第一考 |
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双语教学，助力提升金融专业英语水平 |
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