CFA考试资料答案R09 Probabilistic Approaches- Scenario Analysis, Decision Trees, and Simulations - Answers.pdf

Question #1 of 15 Question ID: 1208632 Which of the following most accurately describes one of the advantages of using simulations in decision making? A) Better estimates of expected value. B) Better estimation of input variables. C) Better decisions. Explanation 7 The Two advantages of using simulation in decision making are 1) Better input estimation and 2) 3 2 1 Simulation yields a distribution for expected value rather than a point estimate. Simulations do not 1) q yield better estimates of expected value than conventional risk adjusted value models, nor 2) lead to i better decisions. s u (Study Session 3, Module 9.1, LOS 9.d) m : t a h