In the probability-weighted scenario approach,which of the following are recommended for consideration in composing and calibrating scenario weights?
I.Competitor margins.
II.Option implied volatility.
III.Market size and market share.
IV.Historical performance of other high-growth companies.

Question

Quizplus · Accepted Answer

Competitor margins, market size, and market share, as well as historical performance of other high-growth companies, are relevant factors in composing and calibrating scenario weights in a probability-weighted scenario approach. Option implied volatility is not typically considered in this context.

In the Probability-Weighted Scenario Approach,which of the Following Are Recommended