and practice using BioSig$-$ID ${?}^{TM}$ here.

$2$ pts

Question $28$

Which of the following statements is CORRECT?

Simulation analysis is a computerized version of scenario analysis where input variables are selected randomly on the basis of their probability distributions.

Well$-$diversified stockholders do not need to consider market risk when determining required rates of return.

Sensitivity analysis is a good way to measure market risk because it explicitly takes into account diversification effects.

Market risk is important, but it does not have a direct effect on stock prices because it only affects beta.