Worst-case scenario analysis develops a measure that computes,say,for one year's returns
A)The worst possible outcome for a portfolio in repeated trials of generating one-year portfolio outcomes.
B)The mean,over repeated trials of generating one-year portfolio returns,of the worst possible outcome in each trial.
C)The worst possible mean outcome for a portfolio in repeated trials of generating one-year portfolio outcomes.
D)The meanest possible outcome for a portfolio in repeated trials of generating one-year portfolio outcomes.

Question

Quizplus · Accepted Answer

Worst-case scenario analysis involves calculating the average of the worst outcomes across multiple trials, which aligns with option B.

Worst-Case Scenario Analysis Develops a Measure That Computes,say,for One Year's