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Gillian is a financial analyst for Ashley Capital, a real estate development company. As she evaluates...

Gillian is a financial analyst for Ashley Capital, a real estate development company. As she evaluates projects for the company, Gillian likes to use a base-case, worst-case, best-case approach in assessing risk. What technique is Gillian using in her risk assessment? Group of answer choices CAPM method sensitivity analysis scenario analysis Monte Carlo simulation

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Answer #1

Scenario analysis is used to find best case performance and worst case performance and it is always used to protect various kinds of scenarios and it is then used to analyse the performance of the company in the scenario so using the scenario analysis, the best case analysis and the worst case analysis can be projected

So she is using scenario analysis.

She is not using Capital Asset pricing model or sensitivity analysis or Monte Carlo simulation.

Correct answer will be option (C) scenario analysis.

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