Which of the following is not a drawback of the simulation approach?
A)The probability distributions of the cash flows are subjective estimates.
B)It can be very difficult to access and use a simulation program.
C)Cash flows in successive periods tend not to be independent.
D)There are no clear guidelines on how to interpret the results.

Question

Quizplus · Accepted Answer

While the other options are potential drawbacks of the simulation approach, it being difficult to access and use a simulation program is not a drawback of the approach itself, but rather a limitation of the specific software or technology being used.

Which of the Following Is Not a Drawback of the Simulation