Q1. A drawback of historical simulation is it: A) depends on the accuracy of the random number generator. B) may not accurately reflect possible outcomes. C) may not account for very rare events.
Q2. Joan Biggs, CFA, acquires a large database of past returns on a variety of assets. Biggs then draws random samples of sets of returns from the database and analyzes the resulting distributions. Biggs is engaging in: A) historical simulation. B) Monte Carlo simulation. C) discrete analysis.
Q3. Monte Carlo simulation is necessary to: A) approximate solutions to complex problems. B) reduce sampling error. C) compute continuously compounded returns.
| 
发表于 2009-1-9 10:45
| 
