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The technique for incorporating Risk into capital budgeting that involves the use of numbers drawn randomly...

The technique for incorporating Risk into capital budgeting that involves the use of numbers drawn randomly from probability distributions is called a: a. sensitivity analysis. b. scenario analysis. c. probability simulation. d. Monte Carlo simulation.

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Answer #1

Correct answer is D.

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The strategy for fusing Risk into capital planning that contains utilization of numbers drawn randomly from probability circulators is known as a Carlo simulation.

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