Why should I choose AnalystNotes?

AnalystNotes specializes in helping candidates pass. Period.

Basic Question 10 of 13

Which statement is true about scenario analysis?

A. Scenario measures generally require normal distributions.
B. Scenario analysis can be used to analyze both negative and positive outcomes.
C. Delta, gamma, and vega can be used directly in scenario analysis if the portfolio has options.

User Contributed Comments 0

You need to log in first to add your comment.
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe sensitivity risk measures and scenario risk measures and compare these measures to VaR;

demonstrate how equity, fixed-income, and options exposure measures may be used in measuring and managing market risk and volatility risk;

describe the use of sensitivity risk measures and scenario risk measures;

describe advantages and limitations of sensitivity risk measures and scenario risk measures;

CFA® 2025 Level II Curriculum, Volume 5, Module 41.