Question

____________- allows more than one variable at a time to be changed, and it takes into account the probabilities of changes in the key variables.

Answer 1

scenario analysis

Step-by-step explanation:

scenario analysis estimates changes that would result from a hypothetical change in the market or a reoccurrence of an historical event.

types of scenario analysis

1. historical scenarios : scenarios measure an hypothetical change that would result from a repeat of a particular period of financial history.

2. Hypothetical scenarios : scenarios have never occurred and are just conjured for the sake of analysis.

Sensitivity measures the impact of the change of one variable.