thommo77

broad definition = scenario testing only changes one variable and holds all others constant, so it is simple to do but it is unrealistic because it doesnt measure what would happen if more than one variable changed

stress testing is moving all variables and analyzing what would happen

note there are three types of each (reading 40)

skycfa

lol no charter holder is specific enough


scenario testing is akin to saying what if war break out in the Saudi Arabia ( for example ) how will variables change and it affect the model/portfolio

stress testing is just moving the price of oil to various extremes to see the effect on the model/portfolio